A new joint venture has officially been formed to acquire TikTok’s U.S. assets, establishing its leadership team just one day before the deadline set by former President Donald Trump for Chinese parent company ByteDance to divest from its American operations. This transaction marks the culmination of a several-year effort to secure the platform’s future in the United States amidst concerns over national security.
The joint venture, which will be primarily American-owned, is expected to implement robust safeguards designed to protect national security. These will include comprehensive data protections, algorithm security measures, content moderation, and software assurances tailored for U.S. users. Leading the venture is CEO Adam Presser, who spearheaded TikTok’s initiatives to safeguard user data in America, alongside Chief Security Officer Will Farrell who was pivotal in privacy and security efforts.
The oversight board of the joint venture features notable figures such as TikTok U.S. CEO Shou Chew, Oracle’s Executive Vice President Kenneth Glueck, and representatives from investment firms including Susquehanna International Group and Silver Lake, along with the Emirati investment firm MGX, among others.
In a gracious acknowledgment, Trump expressed gratitude to Chinese President Xi Jinping for facilitating the deal, suggesting that the Chinese leader could have chosen a different path, but opted to cooperate. Trump highlighted his role in “saving TikTok” and praised his administration’s efforts in finalizing the deal, which he described as a “dramatic, final, and beautiful conclusion.”
The saga surrounding TikTok in the U.S. traces back to Trump’s presidency when he threatened to ban the app due to its Chinese ownership. The issue heated up in 2024 when President Joe Biden enacted legislation that mandated the separation of TikTok from ByteDance to avoid a ban. Throughout the process, Trump delayed implementing the law as he aimed for an agreement to transfer control to American entities.
The finalized deal, which was signed last month, is expected to bring relief to TikTok’s more than 200 million users in the U.S., many of whom rely on the platform for entertainment, information, and income. The agreement hands over control of TikTok’s U.S. user data and a significant portion of its operations to the joint venture, which will be partly owned by a consortium that includes Oracle, Silver Lake, and MGX. Furthermore, ByteDance will retain a minority interest in the joint venture, with notable aspects of the app remaining under its management.
A key goal for the new entity is to retrain TikTok’s algorithm based on U.S. user data and ensure that it is secure. Oracle is set to manage the storage of this data, while the joint venture will handle content moderation for American users. Although the overall experience on the app may seem unchanged, the underlying algorithms might see modifications under the new ownership.
Despite the hopes tied to this agreement, concerns linger regarding whether the arrangement fully resolves the national security issues that prompted legislative action. U.S. officials had previously voiced fears that ByteDance could be compelled to adjust algorithms to serve the interests of the Chinese government. Legal provisions prevent any cooperation between ByteDance and the new American ownership over content recommendation algorithms.
The joint venture has emphasized its commitment to providing a seamless global TikTok experience, positioning U.S. creators to engage on an international level. Until the deal’s closure, there was uncertainty about Beijing’s approval, with TikTok positioned as a significant factor in broader U.S.-China trade discussions. The Chinese government has reiterated its desire for resolutions that align with its laws and advocate for a balanced and fair business environment for foreign companies.
As this joint venture embarks on its new journey, there is cautious optimism about the potential benefits it may deliver for both TikTok and its users in America.