<\/p>\n
It\u2019s a done deal.<\/p>\n
TikTok has formally established a new US-majority joint venture to comply with an executive order signed by US President Donald Trump in September, which allows it to remain operational in the US.<\/p>\n
The structure aims to address longstanding national security concerns raised by US lawmakers, while keeping the app operational for more than 200 million<\/b> US users and 7.5 million<\/b> businesses.<\/p>\n
The TikTok USDS Joint Venture LLC <\/b><\/a>will function as an independent entity with a seven-member board that includes TikTok CEO Shou Chew<\/b>, according to a press release<\/a> late Thursday (January 22).<\/p>\n Adam Presser<\/b> will serve as CEO of the US joint venture. He previously held roles at TikTok US Data Security<\/b>, TikTok and Warner<\/a>Media<\/b>. He joined TikTok in April 2022, and by 2023, he became<\/a> Head of Operations at TikTok after serving as Chief of Staff.<\/p>\n Will Farrell <\/b>takes the role of Chief Security Officer of TikTok USDS Joint Venture, overseeing the joint venture\u2019s comprehensive data privacy and cybersecurity program. He previously held roles at TikTok US Data Security, TikTok and Booz Allen Hamilton<\/b>.<\/p>\n The new arrangement keeps ByteDance<\/a><\/b> as a minority stakeholder with a 19.9%<\/b> holding, while three managing investors \u2014 Silver<\/b> Lake<\/b>, Oracle<\/b>, and MGX<\/b> \u2014 each control 15%<\/b> stakes.<\/p>\n Financial terms of the agreement were not disclosed. In September, Vice President JD<\/strong> Vance<\/strong> said<\/a> the proposed transaction would value TikTok\u2019s US operations at \u201caround $14 billion<\/b>.\u201d<\/p>\n Reuters<\/i>\u00a0noted<\/a>\u00a0that the price tag is \u201cfar below some analyst estimates\u201d.<\/p>\n Additional investors in the consortium include Dell Family Office<\/b>, controlled by Dell Technologies<\/b> founder Michael<\/b> Dell<\/b>; Vastmere Strategic Investments<\/b>, affiliated with Susquehanna International Group<\/b>; Alpha Wave Partners<\/b>; Revolution<\/b>; Merritt<\/b> Way<\/b>, linked to Dragoneer<\/b>; Via Nova<\/b>, affiliated with General<\/b> Atlantic<\/a><\/b>; Virgo<\/b> LI<\/b>, the investment arm of a foundation established by Yuri and Julia Milner<\/b>; and NJJ Capital<\/b>, the family office of French telecommunications entrepreneur Xavier Niel.<\/b> The joint venture\u2019s mandate centers on securing US user data and the platform\u2019s algorithm within Oracle\u2019s domestic cloud infrastructure. Third-party experts will audit and certify the JV\u2019s cybersecurity program, which will adhere to standards including the National Institute of Standards and Technology <\/b>(NIST) CSF <\/b>and 800-53<\/b> and ISO 27001 <\/b>as well as the Cybersecurity & Infrastructure Security Agency<\/b> (CISA) Security Requirements for Restricted Transactions.<\/p>\n The rigid data protection policies are in response to lawmakers\u2019 concerns about potential Chinese government access to American user information.<\/p>\n TikTok USDS Joint Venture\u2019s content recommendation algorithm will be retrained, tested, and updated using US user data, then secured within Oracle<\/b>\u2018s cloud. Additionally, the JV will employ software assurance protocols to secure US apps and cover ongoing source code review and validation.<\/p>\n The security framework will extend beyond TikTok to cover CapCut<\/b>, Lemon8<\/b>, and other apps and websites the JV operates in the US market.<\/p>\n The joint venture will hold decision-making authority over trust and safety policies and content moderation.<\/p>\n While it operates independently, an interoperability framework allows US users to reach global audiences and enables TikTok\u2019s US entities to manage commercial functions including e-commerce, advertising, and marketing.<\/p>\n The board includes TikTok\u2019s global CEO Shou Chew<\/b>, alongside TPG<\/b> Global Senior Advisor Timothy<\/b> Dattels<\/b>, Susquehanna International Group<\/b> Managing Director Mark Dooley<\/b>, Silver Lake <\/b>Co-CEO Egon<\/b> Durban<\/b>, and Kenneth Glueck<\/b>, currently serving as Executive Vice President in the Office of the Chief Executive Officer at Oracle<\/b>.<\/p>\n DXC <\/b>Technology\u2019s President and CEO Raul<\/b> Fernandez<\/b> will serve as an Independent Director and Chair of the board\u2019s Security Committee, while David<\/b> Scott<\/b>, Chief Strategy and Safety Officer at MGX<\/b>, also sits on the board and its Security Committee. Fernandez previously served on the CIA<\/b>\u2019s External Advisory Board and on the boards of Broadcom<\/b> and GameStop<\/b>, while Glueck previously held senior policy roles at the American Electronics Association <\/b>and on Capitol<\/a> Hill<\/b>.<\/p>\n The joint venture marks a sigh of relief for TikTok, which has long fought to keep its business in the US. Under the Protecting Americans from Foreign Adversary Controlled Applications Act, which was signed into law by then-President Joe Biden, TikTok is required to sell its US operations or face an effective ban on operating in the US.<\/p>\n Originally, the deadline for TikTok was set in January 2025, forcing the app offline briefly<\/a>\u00a0for American users. US President Donald Trump brought the app back online during his opening days in office, granting a\u00a075-day pause<\/b>\u00a0to let potential American buyers put together offers.<\/p>\n When talks stalled, Trump pushed the deadline back (after pushing it back multiple times) to\u00a0December 16, 2025, and ordered the\u00a0Department of Justice\u00a0<\/b>not to enforce the law until\u00a0today (Janaury 23, 2026) in order to give time for the deal to be finalized.<\/p>\n Ahead of the joint venture announcement, Business Insider\u00a0<\/i>recently <\/i>reported that TikTok is dividing its US staff between two separate entities. Some US staff received notices earlier this month that they won\u2019t join the new joint venture and instead, they\u2019ll work for a separate entity called\u00a0TT Commerce & Global Services LLC<\/b>\u00a0that remains under\u00a0ByteDance\u00a0ownership.<\/p>\n Trump welcomed the news, thanking Chinese President Xi Jinping for \u201capproving the deal.\u201d<\/p>\n \u201cHe could have gone the other way, but didn\u2019t, and is appreciated for his decision,\u201d the president wrote in a Truth Social post<\/a> on Thursday.<\/p>\n Meanwhile, in neighboring Canada, a federal court has suspended<\/a> the government\u2019s order to shut down TikTok\u2019s business operations, forcing Industry Minister M\u00e9lanie Joly<\/b> to conduct a new national security review of the platform. The order would have prevented access to TikTok for\u00a014 million<\/b>\u00a0users in Canada.<\/p>\n Music Business Worldwide<\/span><\/p>\n<\/div>\n