Trump's $14 Billion Victory: Inside the TikTok USDS Joint Venture Deal

The deal is signed, and Donald Trump is taking a victory lap. But even with a $14 billion valuation for the new TikTok USDS Joint Venture, the core question remains: is America actually any safer?

The New Ownership Structure: TikTok USDS Joint Venture LLC

On Thursday, TikTok announced the official formation of the TikTok USDS Joint Venture LLC, a strategic entity designed to keep the app functional on U.S. soil while addressing federal mandates. Under the terms of the deal, ByteDance will retain only a 19.9 percent stake, effectively shifting majority control to American interests. The new entity is valued at a massive $14 billion.

Heavy Hitters Join the Cap Table

Three managing investors—Silver Lake, Oracle, and MGX—are each taking a 15 percent slice of the pie. Other participants include Michael Dell’s investment firm, Dell Family Office, which holds a smaller stake. This influx of U.S. capital is intended to insulate the platform from the Chinese government's influence, at least on paper.

Security Concerns vs. Political Reality

While the White House is framing this as a definitive win for national security, critics aren't so sure. Skeptics argue that as long as the underlying technology and algorithms were birthed by ByteDance, deep-seated concerns about data privacy and state-sponsored influence will persist. It's unclear whether this joint venture structure truly severs the ties that Congress found so alarming in the first place.