The operations will now be carried out by a newly formed company, TikTok USDS Joint Venture LLC. Chinese owner ByteDance will retain a minority stake of 19.9%.
The operations will now be carried out by a newly formed company, TikTok USDS Joint Venture LLC. Chinese owner ByteDance will retain a minority stake of 19.9%.
The United States and China have put an end to a years-long battle over the fate of TikTok by reaching an agreement to transfer control of the platform's American segment to a group of investors backed by President Donald Trump.
This decision ensures that the popular app, used by over 200 million Americans, will continue to work in the US, avoiding the threat of a complete shutdown, which was quite real a year ago after decisions by Congress and the Supreme Court.
According to the official statement , the operations will now be carried out by the newly formed TikTok USDS Joint Venture LLC. Chinese owner ByteDance will retain a minority stake of 19.9%, while the controlling stake goes to a consortium led by US giants Oracle, Silver Lake Fund and UAE investment company MGX.
The new structure will be headed by Adam Presser, and the board of directors will consist of seven people, most of whom are US citizens. Current TikTok CEO Shu Chu will also retain a seat on the board.
The main condition of the agreement was the implementation of strict security protocols. The new company pledged to operate within clear guarantees that protect US national security. This includes full control over algorithms, content moderation and software, as well as comprehensive protection of US users' personal data from external influence.
Donald Trump, who actively promoted the agreement, publicly welcomed its conclusion on his social network Truth Social. He called the end of the negotiations “dramatic and beautiful”, and specifically thanked Chinese leader Xi Jinping for his constructive position.
According to Trump, the Chinese leader could have blocked the deal, but made a decision that was highly appreciated in the United States.
