Topline
The U.S. and China finalized a deal Thursday that will give a group of Trump-approved investors including Oracle control of TikTok’s U.S. unit, according to multiple outlets, keeping the app in the U.S. indefinitely following its delayed ban.
Key Facts
Tech giant Oracle, private equity firm Silver Lake and Abu Dhabi-based investment firm MGX will be the managing investors of the newly created U.S. business, known as the TikTok USDS Joint Venture.
Each of the three investors hold a 15% stake in the company, with Oracle managing TikTok’s U.S. user data.
TikTok’s content recommendation algorithm will be retrained, tested and updated by the joint venture, according to Thursday’s announcement.
The joint venture will operate independently and be governed by a seven-member board of directors that includes Oracle CEO adviser Kenneth Glueck, Silver Lake co-CEO Egon Durban and MGX chief strategy and safety officer David Scott.
Adam Presser, the head of operations and trust and safety at TikTok and a former Warner Bros. executive, will be the chief executive of TikTok’s U.S. business.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
Key Background
In April 2024, former President Joe Biden signed the bill forcing TikTok’s parent company, ByteDance, to sell the app’s U.S. operations to an American-approved buyer or face a ban in the U.S. The bill was signed after lawmakers voiced concerns TikTok could be used to influence public opinion in the U.S. and that ByteDance could be compelled by the Chinese government to hand over Americans’ sensitive data using the app. The Supreme Court upheld the law allowing the ban, which led to a 14-hour TikTok blackout in the U.S. early last year that was ended by President Donald Trump’s executive order extending the deadline for a deal. The president signed multiple executive orders extending the deadline throughout 2025 until a deal was reached.
Further Reading
TikTok Spied On Forbes Journalists (Forbes)
TikTok Creators’ Financial Info, Social Security Numbers Have Been Stored In China (Forbes)
