TikTok’s parent company, ByteDance, has sign a deal with a group of non-Chinese investors to form a joint venture majority American-owned to keep the social app operating in the US The deal ends a six-year political saga that began in 2020 when President Donald Trump tried to ban the app over national security issues during his first term.
Adam Presser, who is TikTok’s head of operations and trust and security, will become the CEO of TikTok USDS Joint Venture LLC. TikTok CEO Shou Chew will serve as director.
The three managing investors, Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment firm MGX, will each own a 15% stake. Other investors include Michael Dell’s family investment firm, along with several smaller investors.
The TikTok USDS Joint Venture “will operate under defined safeguards that protect national security through comprehensive data protection, algorithmic security, content moderation, and software assurance for US users,” TikTok said.
The joint venture will operate as an independent entity governed by seven members. In addition to Chew, the board includes Timothy Dattels of TPG Global, Mark Dooley of Susquehanna International Group, Egon Durban, co-CEO of Silver Lake, Raul Fernandez, CEO of DXC Technology, Kenneth Glueck of Oracle, and David Scott of MGX.
Trump celebrated the deal post on Truth Socialstated that the app “will now be owned by a group of Great American Patriots and Investors, the largest in the World, and will be an important Voice.”