ByteDance, the Chinese company that owns TikTok, has signed a deal to create a new joint venture in the United States owned by most American investors to prevent a potential ban of the app.
The TikTok USDS Joint Venture LLC will be controlled by 80.1% of U.S. and international investors, including Oracle, Silver Lake, and MGX from Abu Dhabi. ByteDance retains 19.9%, ensuring oversight of user data and application algorithms.
This development follows years of challenges for TikTok in the United States, beginning in August 2020 when former President Donald Trump first attempted to ban the app on national security grounds.
