TikTok Finalizes U.S. Joint Venture to Continue American Operations

TLDR

• TikTok established a U.S. joint venture with Oracle, Silver Lake, and MGX holding 50% ownership stakes
• Adam Presser takes over as CEO of TikTok’s American operations while Shou Chew stays on as board director
• ByteDance maintains 19.9% ownership in the new TikTok USDS Joint Venture structure
• The agreement ends years of regulatory pressure and prevents a nationwide ban of the platform
• TikTok’s content algorithm will operate from Oracle data centers on U.S. soil

TikTok confirmed Thursday it has established a new joint venture to maintain operations in the United States. The deal creates a separate American entity that addresses long-standing government security concerns.

The new company is named TikTok USDS Joint Venture. Adam Presser will lead the U.S. business as chief executive officer.

Presser spent nearly four years at TikTok managing operations and trust and safety. He previously worked as a senior executive at Warner Bros before joining the video platform.

TikTok CEO Shou Chew will serve on the board of directors. The company describes the joint venture as an independent entity with American majority control.

Ownership Split Between U.S. Investors and ByteDance

The ownership structure divides control between American investment firms and ByteDance. Oracle, Silver Lake, and MGX purchased 50% as the primary managing investors.

ByteDance keeps 19.9% of the new U.S. venture. Additional investors include Vastmere Strategic Investments owned by Michael Dell, Alpha Wave Partners, Revolution, and Via Nova from General Atlantic.

A seven-member board will govern the joint venture with most members being American citizens. Timothy Dattels from TPG Global and Mark Dooley from Susquehanna International Group join the board.

Silver Lake co-CEO Egon Durban, DXC Technology CEO Raul Fernandez, Oracle’s Kenneth Glueck, and MGX’s David Scott complete the board. Shou Chew holds the seventh seat.

Algorithm Moves to U.S. Data Centers

TikTok’s recommendation algorithm will relocate to Oracle’s data centers in America. The system will be retrained using data from U.S. users only.

The company says the new setup includes protections for data security, algorithm oversight, and content moderation. U.S. users will still access global content and creators can reach international audiences.

The structure allows related apps like CapCut and Lemon8 to continue operating in the U.S. market. TikTok will handle global product connections and business activities including e-commerce and advertising.

President Donald Trump expressed support for the agreement on Truth Social. He thanked Chinese President Xi Jinping for approving the transaction.

Trump described the new owners as major American investors. China has not released a public statement about the deal.

The joint venture solves problems created by a law former President Joe Biden signed. That legislation required ByteDance to sell U.S. operations or stop offering the app in America.

Trump issued executive orders blocking enforcement of the ban. These orders gave TikTok time to arrange the sale of its American business.

Reports indicate both U.S. and Chinese governments approved the final agreement. The deal was scheduled to close this week according to sources familiar with the matter.

Vice President JD Vance said in September the U.S. business was valued at $14 billion. TikTok CEO Shou Chew informed employees about the U.S. entity name in December.

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