ByteDance Seals Deal: Securing TikTok's US Presence

ByteDance, parent company of TikTok, has finalized a deal to create a U.S. majority-owned joint venture, securing American data and circumventing a potential ban. The venture includes significant U.S. investors, and President Trump has hailed the agreement, praising the collaboration with Chinese President Xi Jinping.

On Thursday, ByteDance, the Chinese owner of TikTok, announced the conclusion of a pivotal agreement forming a U.S. majority-owned joint venture to ensure American data security. This strategic move helps TikTok avoid a looming U.S. ban, underscoring a significant stride for the social media giant amid years of protracted challenges.

The newly established entity, TikTok USDS Joint Venture LLC, promises to uphold U.S. user data privacy and security, administered through cutting-edge cybersecurity measures. ByteDance revealed few specifics about divestiture details yet emphasized American and global investors would control 80.1% while retaining 19.9% ownership.

The collaboration features managing investors Oracle, Silver Lake, and MGX, each holding a 15% stake. The agreement, celebrated by former President Trump, reflects a broader bilateral understanding, marking a notable chapter in U.S.-China tech relations.