After years of regulatory uncertainty, TikTok has taken a decisive step to secure its future in the US market. The social media platform has confirmed the formation of a new majority American-owned joint venture to manage its US operations, a move aimed at preventing a possible nationwide ban tied to its Chinese ownership.
The new entity, named TikTok USDS Joint Venture LLC, will cater to more than 200 million users in the US and around 7.5 million businesses. TikTok said the venture will operate with stronger safeguards around data protection, cybersecurity, content moderation, and the app’s recommendation algorithm.
Under the agreement, US and international investors will collectively own 80.1 per cent of the joint venture. TikTok’s Chinese parent company, ByteDance, will retain a 19.9 per cent stake. Key investors include Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment group MGX, each holding a 15 per cent share. Other investors include the Dell Family Office, Alpha Wave Partners, Revolution, and NJJ Capital.
The deal follows sustained political and regulatory pressure in Washington over national security concerns. The issue dates back to 2020, when then president Donald Trump attempted to block TikTok in the US. More recently, legislation passed during former president Joe Biden’s term required ByteDance to divest TikTok’s US business or face a ban in its largest market.
TikTok said the joint venture will function as an independent company governed by a 7-member board, with a majority of American directors. The structure is intended to provide greater oversight and reassurance to US regulators.
Adam Presser has been appointed chief executive of the US business. In his role, he will oversee the protection of US user data while also driving growth across TikTok and its related apps.
The announcement marks a major shift in TikTok’s US strategy and signals a compromise between regulatory demands and the platform’s continued presence in one of its most important markets.
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