ByteDance Forms U.S.-Owned JV for TikTok to Avert Ban

ByteDance, the Chinese parent company of TikTok, announced on Thursday the creation of a new majority American-owned joint venture to oversee its U.S. operations, a move designed to resolve longstanding national security concerns and avert a federal ban on the popular short-video app. The agreement, finalized just ahead of an impending deadline, ensures continued access for over 170 million American users and 7.5 million businesses while placing control of sensitive data and algorithms under U.S.-based management.

The joint venture, named TikTok USDS Joint Venture LLC, will hold 80.1 percent ownership by American and global investors, with ByteDance retaining a minority 19.9 percent stake. Leading the investment are three managing partners: cloud computing company Oracle Corp., private equity firm Silver Lake Management, and Abu Dhabi-based MGX, each taking a 15 percent share. Additional investors include the Dell Family Office, affiliated with Dell Technologies founder Michael Dell; Vastmere Strategic Investments, an affiliate of Susquehanna International Group; Alpha Wave Partners; Revolution; Merritt Way, managed by Dragoneer partners; Via Nova, an affiliate of General...