Former TikTok CEO Kevin Mayer on new U.S. joint venture: I think it's a good deal

Core Viewpoint - TikTok's parent company ByteDance has reached an agreement to create a new US joint venture for the US version of the app, which will be majority owned by US investors, addressing security concerns raised by Congress [1][3]. Company Structure and Ownership - The new joint venture will have ByteDance as the single largest shareholder, with TikTok remaining 100% owned by ByteDance [6]. - The deal is structured to ensure that Chinese ownership is below the 20% threshold, with Oracle managing the algorithm and data flow, limiting access to US data only [3][6]. Regulatory Compliance - The arrangement appears to meet US security regulations, as Oracle will review the algorithm without the ability to copy or steal it, and the data used for training the algorithm will be stored and processed in the US [9][10]. - There is a lack of official Chinese government approval, but state media suggests that the deal has Beijing's approval, indicating alignment with Chinese law [5][8]. Commercial Operations - ByteDance will continue to oversee ad sales and e-commerce operations, which is expected to drive revenue and maintain the app's commercial success [11][12]. - The app's download process is anticipated to be seamless, with updates occurring in the background, minimizing user churn [12][13]. Future Considerations - The joint venture structure may complicate future mergers and acquisitions due to the diverse ownership interests involved, making alignment on a common vision challenging [15]. - The potential for ByteDance to go public in the future is noted as a possibility stemming from this joint venture arrangement [15].