TikTok has reached an agreement that allows it to continue operating in the United States, avoiding a potential nationwide ban. ByteDance, the Chinese parent company, will retain a minority stake in a newly formed US entity, while American and international investors hold the majority share.
The new company, TikTok USDS Joint Venture LLC, will oversee the platform’s U.S. operations for over 200 million users. About 80 percent of the venture is owned by U.S. and global investors, while ByteDance retains 19.9 percent. Key stakeholders include Oracle, Silver Lake, Abu Dhabi’s MGX, and Michael Dell’s investment firm.
Leadership changes include Adam Presser as CEO of the US operations, with Will Farrell as chief security officer. TikTok’s global CEO, Shou Chew, will join the board.
The deal introduces stricter data and security measures. US user data will be stored on domestic servers, and the recommendation algorithm will be retrained using US data, addressing long-standing concerns over Chinese access.
This arrangement satisfies US legal requirements set in 2024, which demanded TikTok divest from ByteDance or face a ban. Both US and Chinese regulators have approved the plan, bringing an end to years of uncertainty over TikTok’s future in America.
The agreement ensures the popular short-video app can continue serving its US audience while meeting security and privacy standards demanded by lawmakers.
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