In a major development for the popular video-sharing app, TikTok today announced the completion of a highly anticipated deal establishing a majority American-owned joint venture designed to safeguard U.S. national security and user privacy.
This new entity, called the TikTok U.S. Data Security (USDS) organization, will operate independently under the guidance of a seven-member board of directors, with a majority of American executives. Leading the board is TikTok CEO Shou Chew alongside co-CEOs from Silver Lake and key representatives from Oracle, Susquehanna International Group, DXC Technology, MGX, and TPG Global.
Oracle’s involvement has drawn particular attention in the entertainment world due to CEO Larry Ellison’s ties to Hollywood through investments in Paramount Skydance and Warner Bros. Discovery.
Adam Presser has been appointed CEO of the TikTok USDS Joint Venture. With experience from TikTok and WarnerMedia, Presser will oversee securing U.S. user data, app security, and algorithm management, while driving growth for TikTok, CapCut, and other platforms in the U.S. Will Farrell will serve as Chief Security Officer.
Key managing investors in the joint venture include Silver Lake, Oracle, and MGX, each holding a 15% stake. Other notable investors include the Dell Family Office, Susquehanna International Group, Alpha Wave Partners, Revolution, Dragoneer, General Atlantic affiliates, and others. TikTok’s parent company, ByteDance, retains a 19.9% stake.
While financial specifics were not disclosed, TikTok revealed that the platform now serves over 200 million U.S. users and 7.5 million American businesses.
The agreement marks the conclusion of a lengthy saga dating back to former President Donald Trump’s administration, when the Committee on Foreign Investment in the United States (CFIUS) initiated a review of TikTok’s U.S. operations amid security concerns. Subsequent legal challenges and legislation under President Joe Biden culminated in a law requiring TikTok to either sell its U.S. operations to American interests or face a ban.
Despite the law’s passage, enforcement was delayed as the government negotiated a deal, which TikTok’s CEO signaled would likely close this month. Today’s announcement confirms that transition.
This joint venture aims to balance continued access to TikTok’s vibrant global community with stringent protections for U.S. data security, ensuring the app’s future in the American market.
Reporting by Noko David
