**TikTok’s Future Secured: ByteDance Signs Deal with Non-Chinese Investors to Create Majority American-Owned Entity**
Finally, the six-year saga surrounding TikTok’s ownership has come to an end. The social media giant’s parent company, ByteDance, has announced a deal with non-Chinese investors to create a majority American-owned entity, effectively avoiding a US ban.
The new entity, TikTok USDS Joint Venture LLC, will be led by Adam Presser, who has been appointed as the CEO. TikTok CEO Shou Chew will serve as a director, ensuring a smooth transition of leadership. The company’s unique ownership structure is an interesting one, with three managing investors – Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment firm MGX – each holding a 15% stake.
Other notable investors include Michael Dell’s family investment firm and several smaller investors. I’m curious to know more about these investors and their motivations behind this deal. After all, it’s not every day you see Chinese companies partnering with American investors to create a majority American-owned entity.
The entity will operate independently, governed by a seven-member board that includes Chew, as well as representatives from TPG International, Susquehanna International Group, Silver Lake, DXC Technology, Oracle, and MGX. This board is essentially a team of experts who will ensure the new entity’s success and navigate the complex web of international politics and regulations.
TikTok has emphasized that the new entity will function under “defined safeguards that protect national security by complete data protections, algorithm security, content moderation, and software assurances for U.S. users.” In other words, the company is reassuring users that their data and online experience will remain secure. This is a crucial move, given the concerns over TikTok’s ties to China and data practices.
Interestingly, former President Trump, who initially attempted to ban TikTok, has celebrated the deal on his Truth Social platform, stating that the app will now be owned by “a group of Great American Patriots and Investors, the Best in the World, and will be an important Voice.” Who would have thought that Trump would be celebrating a deal that creates a majority American-owned entity?
This deal marks a significant turning point for TikTok, which has been facing increased scrutiny over its ties to China and concerns about its data practices. By creating a majority American-owned entity, the company is attempting to navigate the complex web of international politics and regulations. It will be interesting to see how this new entity performs in the coming months and how it addresses the concerns of its users. Only time will tell.
**Source:** TechCrunch – TikTok Finalizes Deal to Create New US Entity and Avoid Ban
