TikTok’s parent company, ByteDance, has signed a deal with a group of non-Chinese investors to form majority American-owned joint venture to keep the social app operating in the U.S. The deal ends a six-year long political saga that started in 2020 when President Donald Trump tried to ban the app over national security concerns during his first term.
Adam Presser, who was TikTok’s head of operations and trust and safety, will be the CEO of TikTok USDS Joint Venture LLC. TikTok CEO Shou Chew will serve as a director.
The venture’s three managing investors, Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment company MGX, will each hold a 15% stake. Other investors include Michael Dell’s family investment firm, along with several smaller investors.
TikTok USDS Joint Venture “will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users,” TikTok said.
The joint venture will operate as an independent entity governed by seven members. In addition to Chew, the board includes Timothy Dattels of TPG Global, Mark Dooley of Susquehanna International Group, Egon Durban, co-CEO of Silver Lake, Raul Fernandez, CEO of DXC Technology, Kenneth Glueck of Oracle, and David Scott of MGX.
Trump celebrated the deal in a post on Truth Social, stating that the app “will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice.”