TikTok Finalizes U.S. Joint Venture to Avert Ban, Oracle and Silver Lake Take Stake
TikTok has formed TikTok USDS, a U.S.-based joint venture that resolves its five-year regulatory standoff. The restructured entity keeps the video platform operating in America while addressing national security concerns through Oracle's cloud infrastructure and new American ownership.
Adam Presser, TikTok's former head of operations, assumes the CEO role while Shou Chew remains as director. The ownership structure gives ByteDance a 19.9% stake, with Oracle, Silver Lake, and MGX collectively holding 50% as managing investors.
The deal transfers TikTok's algorithm to Oracle's U.S. data centers, where it will be trained exclusively on American user data. This arrangement satisfies the 2024 Congressional mandate that threatened a ban over Chinese data access concerns.
