TikTok has announced establishing a majority American-owned joint venture to operate its United States (US) business, a move aimed at avoiding bans linked to its Chinese ownership.
The TikTok Joint Venture will serve over 200 million users and 7.5 million businesses in the US while implementing safeguards for data protection and content moderation, the company said.
The new structure comes in response to a 2024 law under former president Joe Biden, which required Chinese-owned ByteDance to sell TikTok’s US operations or face a ban. The law was introduced amid concerns that China could access US user data or influence audiences through TikTok’s algorithm.
US President Donald Trump has welcomed the deal and credited himself for facilitating it, while also acknowledging Chinese President Xi Jinping for approving the arrangement. “I am so happy to have helped in saving TikTok!” Trump wrote on Truth Social.
“It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” he said.
Under the new venture, ByteDance retains a 19.9 percent stake, keeping its ownership below the 20 percent limit set by law. Three other investors Silver Lake, Oracle and Abu Dhabi-based AI fund MGX each hold 15 percent stakes.
The joint venture will have decision-making authority over trust and safety policies and content moderation for US users. TikTok’s global entities will manage international product integration and commercial activities, including e-commerce and advertising.
US user data will be stored in Oracle’s cloud environment and undergo third-party cybersecurity audits following federal standards, TikTok said.