ByteDance's Transformative Deal to Protect TikTok in the U.S.

ByteDance, TikTok's Chinese owner, has created a majority American-owned joint venture to avoid a U.S. ban. The deal secures U.S. user data and involves stakeholders like Oracle and Silver Lake holding 80.1% ownership, while ByteDance maintains a 19.9% stake. This follows previous national security concerns.

In a significant development, ByteDance, the Chinese owner of TikTok, announced finalizing a deal to establish a majority American-owned joint venture. The move aims to prevent a U.S. ban on the popular app, which serves over 200 million American users.

The joint venture, TikTok USDS Joint Venture LLC, will ensure that U.S. user data, apps, and algorithms are protected through stringent data privacy and cybersecurity measures. Key stakeholders in this venture include Oracle, Silver Lake, and Abu Dhabi-based MGX, who collectively hold an 80.1% stake, leaving ByteDance with 19.9% ownership.

This agreement marks a milestone in resolving longstanding battles stemming from national security concerns, which began in August 2020 when former President Donald Trump attempted to ban the app.

(With inputs from agencies.)