TikTok seals deal for new US joint venture to avoid American ban
Trump praised the deal in a social media post saying TikTok "will now be owned by a group of Great American Patriots and Investors, the Biggest in the World."
TikTok's Chinese owner, ByteDance, yesterday (22 January) said it has finalized a deal to establish a majority American-owned joint venture that will secure US data, to avoid a US ban on the short video app used by over 200 million Americans.
The deal is a milestone for the social media firm after years of battles that when President Trump tried to ban the app over national security concerns.
Trump later opted not to enforce a law passed in April 2024 ByteDance to sell its US assets by the following January or face a ban - a measure.
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ByteDance said TikTok USDS Joint Venture LLC will secure US user data, apps and algorithms through data privacy and cybersecurity measures. It disclosed few details about the divestiture.
Trump praised the deal in a social media post saying TikTok "will now be owned by a group of Great American Patriots and Investors, the Biggest in the World."
He thanked Chinese President Xi Jinping "for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn't, and is appreciated for his decision."
The agreement provides for American and global investors to hold 80.1% of the venture while ByteDance will own 19.9%.
TikTok USDS JV's three managing investors - cloud computing giant Oracle, private equity group Silver Lake (SILAK.UL) and Abu Dhabi-based investment firm MGX - will each hold 15%.
A White House official told Reuters that the US and Chinese governments had signed off on the deal. The Chinese Embassy in Washington did not immediately comment.
Trump last year said the deal met the terms of divestiture requirements under the 2024 law. The White House in September said the venture would operate TikTok's US app.
Interested parties have yet to disclose elements of the deal such as the business relationships between the venture and ByteDance.
The president has more than 16 million followers on his personal TikTok account and credited the app with helping him win reelection.
He received a document from TikTok on 22 December touting how popular he is on the app, showed a photo published this month by the New York Times. The White House also launched an official TikTok account in August.
