After a lot of back and forth, TikTok has finally closed a deal that will allow it to continue operating in the United States. The deal, completed just one day before the deadline set by US President Donald Trump, secures access for the app’s roughly 200 million American users. According to a company press release, the restructuring will create a new entity supported by a consortium of global investors alongside parent company ByteDance. Oracle, UAE-based investment firm MGX and private equity firm Silver Lake will each acquire a 15 per cent stake, while ByteDance will retain a 19.9 per cent holding.
“The majority American-owned Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users,” TikTok said in a statement.
The company added that TikTok USDS Joint Venture LLC will be responsible for safeguarding US user data, applications and the platform’s algorithm through strengthened data privacy and cybersecurity measures. The new entity will be led by CEO Adam Presser and Chief Security Officer Will Farrell, and will operate under the oversight of TikTok CEO Shou Chew and a seven-member board.
The seven-member board will include Oracle Executive Vice President Kenneth Glueck, TPG Global senior adviser Timothy Dattels, Susquehanna International Group managing director Mark Dooley, Silver Lake co-CEO Egon Durban, DXC Technology CEO Raul Fernandez and MGX chief strategy and safety officer David Scott.
The restructuring will also extend to other ByteDance-owned platforms operating in the United States, including CapCut and Lemon8.
Trump’s Thank You Note for Xi
In a Truth Social post, US President Donald Trump thanked Chinese President Xi Jinping after the TikTok deal was closed.
“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump wrote, and credited the app for helping him earn the youth vote in his 2024 presidential run.
He also thanked Vice President JD Vance and others for helping him close this “very dramatic” deal.
“I would also like to thank President Xi of China for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision,” wrote Trump.
It is to be noted that the groundwork for the agreement was laid late last year. In December, TikTok chief executive Shou Zi Chew told employees in a memo, reported by CNN, that the company had signed a Trump-backed deal to sell its US assets to a group of American investors. Although the transaction was not complete at the time, it was widely seen as a crucial step towards safeguarding TikTok’s long-term presence in the country.
In September, Donald Trump signed an executive order clearing the way for the sale of TikTok’s US assets to a consortium made up largely of American investors.
(With inputs from agencies)
