TikTok's Strategic U.S. Joint Venture: A New Era in Tech Collaboration

TikTok is forming a new U.S. joint venture, TikTok USDS Joint Venture LLC, in collaboration with Oracle, Silver Lake, and MGX, focusing on U.S. data protection, algorithm security, content moderation, and software assurance. The venture will be 50% held by new investors and operate independently upon closing.

In a major development, TikTok has signed agreements with Oracle, Silver Lake, and MGX to establish a new U.S. joint venture called TikTok USDS Joint Venture LLC, as revealed in an internal memo by TikTok's CEO.

The venture will primarily focus on strengthening data protection, algorithm security, content moderation, and software assurance in the United States. According to the memo, the joint venture will be 50% held by a consortium of new investors, ensuring it operates as an independent entity upon completion.

The transaction is expected to be finalized within 120 days of the executive order issuance. Affiliates of ByteDance's existing investors will hold 30.1%, while ByteDance retains a 19.9% stake, marking a significant step forward in TikTok's U.S. operations.

(With inputs from agencies.)