TikTok owner ByteDance has finalized a deal to create a majority American-owned joint venture, TikTok USDS Joint Venture LLC, designed to secure U.S. user data and prevent a U.S. ban of the app. Under the agreement, American and global investors will hold 80.1%, while ByteDance retains 19.9%. Oracle, Silver Lake and Abu Dhabi-based MGX will each take 15% stakes as managing investors, with Oracle’s U.S. cloud hosting and securing the recommendation algorithm, which will be retrained and updated using U.S. user data. The deal has reportedly received sign-off from both U.S. and Chinese authorities, and TikTok has appointed Adam Presser as chief executive and Will Farrell as chief security officer, with TikTok CEO Shou Chew joining the venture’s board.
