TikTok Avoids US Ban As ByteDance Seals Majority American-Owned Venture Backed By Oracle, Silver Lake, MGX: 'Happy To Have Helped,' Says Trump - Oracle (NYSE:ORCL)

Core Viewpoint - TikTok has established a majority American-owned joint venture to address national security concerns and comply with U.S. law, ensuring its continued operation in the U.S. market [1][2]. Group 1: Joint Venture Formation - ByteDance has finalized an agreement to create TikTok USDS Joint Venture LLC, which will manage U.S. user data, the app, and its recommendation algorithm [2][4]. - The joint venture will be owned 80.1% by American and global investors, while ByteDance retains a 19.9% minority stake [4]. Group 2: Compliance and Security Measures - U.S. user data and the recommendation algorithm will be stored in Oracle's U.S.-based cloud, with enhanced privacy and cybersecurity measures implemented [4]. - The algorithm will be retrained and tested using only U.S. user data to further ensure compliance with U.S. regulations [5]. Group 3: Historical Context and Political Reactions - The deal follows years of scrutiny beginning in 2020, when former President Trump sought to ban TikTok due to national security risks associated with its Chinese ownership [3]. - Trump expressed support for the agreement, highlighting its significance for American investors and thanking Chinese President Xi Jinping for approving the deal [6].