TikTok seals deal for new US joint venture to avoid American ban

Core Viewpoint - ByteDance has finalized a deal to establish a majority American-owned joint venture, TikTok USDS Joint Venture LLC, to secure U.S. data and avoid a ban on TikTok, which is used by over 200 million Americans [1][2]. Group 1: Joint Venture Structure - The joint venture will have American and global investors holding 80.1% ownership, while ByteDance retains 19.9% [3]. - The three managing investors of the joint venture are Oracle, Silver Lake, and MGX, each holding 15% [4]. Group 2: Regulatory Context - The deal comes after a law passed in April 2024 that required ByteDance to divest its U.S. assets by January 2025 or face a ban, a measure upheld by the Supreme Court [2]. - The White House confirmed that the venture will operate TikTok's U.S. app, meeting the divestiture requirements outlined in the 2024 law [5]. Group 3: Investor Composition - Investors in the joint venture include notable firms such as Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, and others [7].