TikTok Secures Future in US with New Joint Venture Deal
TikTok has successfully navigated its prolonged battle to remain operational in the United States by announcing a groundbreaking joint venture deal. This agreement aims to address concerns over the app’s Chinese ownership and potentially avoid a nationwide ban.
Deal Details
According to an internal memo obtained by AFP, TikTok CEO Shou Chew revealed that the company and its parent firm ByteDance have established a new US‑based entity. This venture is backed by prominent investors, including Oracle, Silver Lake, and Abu Dhabi’s MGX, each holding a 15% stake. Existing ByteDance investors will retain slightly over 30%, with ByteDance itself maintaining just under 20% ownership, in line with US legal requirements.
The new entity will be responsible for critical aspects such as data protection, algorithm security, content moderation, and software safety for American users. Chew emphasized that this structure ensures robust protection for US user data. Oracle, led by Larry Ellison—who has close ties with former President Donald Trump—will oversee the technical infrastructure and maintain strict oversight.
Impact for Users and Creators
For TikTok users, this development signals that the app is likely to remain accessible in the US. Creators and businesses can also look forward to greater stability, as the uncertainty surrounding the app’s future is resolved, safeguarding their income and marketing strategies.
Political Context
Politically, the deal represents a compromise, granting the US the control it sought without mandating a complete sale of TikTok’s operations—a scenario that was unlikely due to Beijing’s opposition. Former President Trump had previously extended the ban deadline to January, and this agreement aligns with the framework proposed by the White House last September.
However, the deal is not yet finalized. Chew acknowledged that there is still work to be done before the target closing date of January 22, and approval from the Chinese government is required. Analysts caution that regulatory scrutiny will continue, with potential new rules from US regulators and ongoing questions about the algorithm’s transparency.
Future Outlook
Experts view this as a significant victory for ByteDance, as maintaining a presence in the US market avoids financial disaster and allows the company to focus on AI and potential future IPOs. While TikTok’s future in America appears more secure than ever, debates and challenges are expected to persist.
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