TikTok Continues Operations in US as New Joint Venture

Core Viewpoint - TikTok will continue its operations in the U.S. through a new joint venture called TikTok USDS Joint Venture LLC, which is majority-owned by American investors to address national security concerns [1][3]. Group 1: Joint Venture Structure - The joint venture includes three managing investors: Silver Lake, Oracle, and MGX, each holding 15% of the venture [2]. - ByteDance, the former owner based in China, retains a 19.9% stake in the joint venture, while the remaining shares are held by a consortium of other investors [2]. Group 2: Compliance and Security Measures - TikTok USDS Joint Venture is established to comply with national security requirements and includes measures for data privacy, cybersecurity, content moderation, and third-party certifications [3]. - The U.S. entities of TikTok will manage global product interoperability, eCommerce, advertising, and marketing to ensure a consistent experience for U.S. users and businesses [4]. Group 3: Political Context - Former President Trump announced the deal's completion, emphasizing its significance for American ownership and national security [4]. - A law signed by President Biden in April 2024 mandated ByteDance to divest its stake within 12 months to avoid a potential ban on TikTok [4]. - Trump indicated plans to extend the deadline for the divestment and protect companies that assist in keeping TikTok operational [5].