TikTok seals U.S. joint venture: Here's what you need to know

Core Viewpoint - TikTok has officially formed a joint venture to continue its operations in the US, addressing national security concerns related to data management and ownership [1][2]. Group 1: Joint Venture Structure - The new US entity is majority American-owned, with three managing investors: Oracle, Silverlake, and Abu Dhabi's MGX, each holding a 15% stake [2]. - The board consists of seven members, predominantly American, and Oracle will safeguard US data [2]. Group 2: Compliance with Regulations - This arrangement aligns with President Trump's executive order from September, which aimed to mitigate concerns over potential Chinese influence on the app and American user data [1][3]. - ByteDance, TikTok's parent company, retains a 19.9% stake but is prohibited from having an operational relationship with TikTok in the US [4]. Group 3: Government and Regulatory Response - Chinese authorities have approved the arrangement, including the licensing of the algorithm from ByteDance, although the Chinese government remains cautious about the approval process [5]. - The deal is expected to facilitate upcoming discussions between President Trump and President Xi, removing previous hurdles [6]. Group 4: Ongoing Security Concerns - Despite the structural changes, there are lingering doubts among national security experts regarding the extent of ByteDance's influence and the effectiveness of the measures taken to ensure data security [7][8].