TikTok’s Chinese parent company, ByteDance, has officially finalized a significant deal aimed at establishing a U.S. version of the popular video-sharing platform. The agreement, valued at $14 billion, marks a pivotal moment in the ongoing negotiations regarding TikTok’s future in the United States, allowing the platform to operate under a new joint venture structure.
Under the terms of the deal, ByteDance will retain a 19.9% stake, while a consortium of non-Chinese investors will hold the remaining 80.1%. This joint venture, named TikTok USDS Joint Venture LLC, comes after years of uncertainty about the app’s operations in the U.S., particularly following a law enacted in 2024 that mandated TikTok sever ties with China by January of that year or face being banned.
Key Investors and Leadership
The primary investors in this new venture include major firms such as Oracle, Silver Lake, and the Emirati investment company MGX, each acquiring a 15% share. Adam Presser, TikTok’s former head of operations, has been appointed as the CEO of the newly formed entity. In a recent press release, TikTok stated that Oracle and its partners will be responsible for retraining, testing, and updating the platform’s content recommendation algorithm using U.S. user data.
According to The New York Times, the existing 200 million U.S. users will continue to access the TikTok app, though it remains unclear how the content moderation system will evolve under Oracle’s oversight.
Legislative Concerns and Future Implications
The shift in ownership was driven by concerns among lawmakers that the Chinese government could potentially surveil American users or manipulate content for propaganda purposes. Georgetown University law professor Anupam Chander expressed skepticism regarding the implications of the ownership change, suggesting that shifting control to American firms with close ties to political figures could trade foreign propaganda fears for domestic issues.
As the deal unfolds, “China hawks” in Congress have expressed their intent to closely examine the agreement to ensure it complies with legal standards. While there seems to be a willingness to accept former President Donald Trump‘s assertion that this arrangement addresses national security concerns, it is evident that scrutiny will continue.
The successful completion of this deal aims to stabilize TikTok’s operations in the U.S. while addressing legislative concerns. As the platform navigates its new structure, the focus will remain on user data security and the potential influence of American investors on content moderation practices.
