US and China Finalize Deal to Save TikTok's US Operations, App Will Remain in the Country
A high-stakes deal between the US and Chinese governments has brought an end to the uncertainty surrounding the future of social media app TikTok in the United States. The agreement allows for a group of Trump-approved investors, including tech giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment firm MGX, to take control of TikTok's US operations.
As part of the deal, each investor will hold a 15% stake in the company, with Oracle managing TikTok's US user data. The new entity, known as the TikTok USDS Joint Venture, will operate independently and be governed by a seven-member board of directors.
The joint venture has also announced plans to retrain, test, and update TikTok's content recommendation algorithm, a move aimed at alleviating concerns over data protection and user privacy. Adam Presser, the head of operations and trust and safety at TikTok, will serve as the chief executive of the US business.
The deal marks a significant relief for TikTok, which had faced a 14-hour blackout in the US early last year before President Donald Trump intervened with an executive order extending the deadline for a deal. Former President Joe Biden signed a bill in April requiring ByteDance, TikTok's parent company, to sell its US operations to an American-approved buyer or face a ban.
Trump hailed the agreement as a success, saying he was "happy to have helped" and thanked Chinese President Xi Jinping for his decision. The deal is seen as a major victory for Trump, who had been pushing for a resolution on TikTok's US operations for months.
A high-stakes deal between the US and Chinese governments has brought an end to the uncertainty surrounding the future of social media app TikTok in the United States. The agreement allows for a group of Trump-approved investors, including tech giant Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment firm MGX, to take control of TikTok's US operations.
As part of the deal, each investor will hold a 15% stake in the company, with Oracle managing TikTok's US user data. The new entity, known as the TikTok USDS Joint Venture, will operate independently and be governed by a seven-member board of directors.
The joint venture has also announced plans to retrain, test, and update TikTok's content recommendation algorithm, a move aimed at alleviating concerns over data protection and user privacy. Adam Presser, the head of operations and trust and safety at TikTok, will serve as the chief executive of the US business.
The deal marks a significant relief for TikTok, which had faced a 14-hour blackout in the US early last year before President Donald Trump intervened with an executive order extending the deadline for a deal. Former President Joe Biden signed a bill in April requiring ByteDance, TikTok's parent company, to sell its US operations to an American-approved buyer or face a ban.
Trump hailed the agreement as a success, saying he was "happy to have helped" and thanked Chinese President Xi Jinping for his decision. The deal is seen as a major victory for Trump, who had been pushing for a resolution on TikTok's US operations for months.