TikTok avoids US ban by finalizing historic Trump-backed American majority ownership deal

Core Insights - TikTok has finalized a historic deal to establish a majority American-owned joint venture to avoid a potential U.S. ban, marking a significant milestone after years of legal and political challenges since 2020 [1][4] Group 1: Joint Venture Structure - The new entity, TikTok USDS Joint Venture LLC, is built on the TikTok U.S. Data Security organization and aims to meet U.S. regulatory requirements set by a previous executive order [2][6] - American entities will hold an 80.1% stake in the joint venture, while ByteDance retains a 19.9% stake [7] - The joint venture will be managed by three companies: Oracle, Silver Lake, and MGX, each holding a 15% stake [7] Group 2: Governance and Management - The joint venture will have a seven-member board of directors, predominantly American, including representatives from major investment firms and technology companies [12] - Adam Presser has been appointed as the CEO of the new joint venture, with other board members including TikTok CEO Shou Chew and executives from Oracle, Silver Lake, and MGX [12] Group 3: Data Security and User Experience - The venture will create a domestic cloud environment under Oracle to enhance data privacy and cybersecurity for U.S. user data, apps, and algorithms [10] - The content recommendation algorithm will be secured within Oracle's U.S. cloud environment [10] - The joint venture aims to ensure that U.S. users maintain a "global TikTok experience," allowing for worldwide creator discovery while managing commercial activities like e-commerce and advertising [13]