TikTok Announces Completion of U.S. Deal
On January 22, ByteDance, the parent company of TikTok, announced the completion of the formation of a joint venture called TikTok USDS, in which American stakeholders hold a controlling interest. The move was made to avoid a potential ban under national security legislation.
In the new company, 80.1% of shares will be held by U.S. and international investors, while ByteDance will retain 19.9%. Among the major stakeholders, cloud giant Oracle, investment firm Silver Lake, and Abu Dhabi-based MGX will each hold 15%.
Other investors include Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital.
Initial details of the deal align with reports from September, and media outlets had already reported the agreement being signed in December. Both the U.S. and Chinese governments approved the creation of this joint venture.
The new company will be responsible for storing, securing, and managing TikTok user data and algorithms within the United States, using Oracle’s cloud infrastructure.
ByteDance will continue to generate revenue from advertising and e-commerce, which will be handled by a separate division.
The new entity will be led by Adam Presser, former Deputy CEO of TikTok. TikTok CEO Shou Zi Chew will join the board of directors and oversee global business and strategy.
TikTok has more than 200 million users in the United States.
