Particle.news
Download on the App Store

TikTok Finalizes U.S. Joint Venture, Averting Ban Under Divestiture Law

The structure moves data into Oracle’s U.S. cloud to satisfy national‑security requirements through American-led governance.

Overview

  • U.S. and international investors will hold about 80.1% of TikTok USDS Joint Venture LLC, with Oracle, Silver Lake and MGX at 15% each, while ByteDance retains 19.9%.
  • Adam Presser was appointed CEO and Will Farrell chief security officer, as a seven‑member, majority‑American board takes oversight that includes TikTok CEO Shou Chew.
  • U.S. user data will reside in Oracle’s secure cloud with third‑party cybersecurity audits, and the recommendation algorithm will be retrained on U.S. data.
  • A White House official said the United States and China approved the deal, keeping the app available to more than 200 million U.S. users and 7.5 million businesses.
  • Critics say ByteDance’s minority stake and the reported licensing of the algorithm may leave questions about influence and operational ties even as the U.S. venture leads trust and safety.