TikTok finalizes U.S. joint venture to continue operations

• Photo from Pixabay.

TikTok has finalized a deal to continue operating in the United States through the creation of a new corporate entity, TikTok USDS Joint Venture LLC, following U.S. legislation that threatened a nationwide ban on the platform.

Under the finalized arrangement, TikTok’s U.S. business is placed under a joint venture structure that is majority owned by American and other non-Chinese investors. ByteDance, TikTok’s China-based parent company, retains a minority ownership stake of 19.9 percent.

According to disclosures made by the company, investors including Oracle, Silver Lake, and MGX are among the shareholders of the new U.S. entity.

The joint venture will be led by executives previously associated with TikTok’s U.S. operations. Adam Presser has been appointed chief executive officer, while Will Farrell will serve as chief security officer. TikTok global chief executive officer Shou Zi Chew is expected to serve on the board.

The deal follows legislation enacted in 2024 that required TikTok to change its ownership structure in the United States or face a ban from operating in the country. TikTok continued negotiations with U.S. officials as the deadline approached, resulting in the establishment of the joint venture.

U.S. President Donald Trump publicly welcomed the agreement, saying it would allow the platform to remain available in the United States.

Some members of Congress have said they plan to review the arrangement, but TikTok remains operational in the U.S. following the completion of the deal.