TikTok USDS Joint Venture Formed: $14 Billion Deal Averts U.S. Ban
TikTok forms the TikTok USDS Joint Venture with a $14B valuation to keep operating in the US. ByteDance keeps 19.9% while Oracle hosts the algorithm.
TikTok is officially staying in the United States. On Thursday, the short-form video giant announced the formation of the TikTok USDS Joint Venture, a strategic move that successfully navigates the intense regulatory pressure that once threatened to shutter the app's domestic operations.
Inside the TikTok USDS Joint Venture Structure
The new entity will be led by Adam Presser as CEO, who previously spearheaded TikTok's trust and safety operations. Notably, ByteDance will retain only a 19.9% stake in the venture, shifting majority control to a consortium of high-profile American investors. Shou Chew will serve as a director on a board dominated by U.S. executives.
| Entity | Role | Key Figure/Firm |
|---|---|---|
| Joint Venture CEO | Operational Lead | Adam Presser |
| Managing Investors | Financial Backing | Silver Lake, Oracle, MGX |
| Data Hosting | Technical Assurance | Oracle Cloud Infrastructure |
Security Measures and Algorithmic Independence
To satisfy national security concerns, TikTok's prized recommendation algorithm will now reside within Oracle's American data centers. It'll be retrained and tested exclusively on U.S. user data. This arrangement, valued at approximately $14 billion according to Vice President JD Vance, ensures that other services like CapCut and Lemon8 can also continue operating in the country.
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