TikTok Seals Deal for New U.S. Entity to Avoid Ban

TikTok seals deal for new U.S. entity to avoid ban. This big news has ended years of worry for millions of users. TikTok’s parent company, ByteDance, has signed a deal with a group of non-Chinese investors. They formed a majority American-owned joint venture. This keeps the popular social app running in the U.S. without a ban.

The story started back in 2020. Then-President Donald Trump wanted to ban TikTok over national security fears. He worried that ByteDance, based in China, might share U.S. user data with the Chinese government. That kicked off a six-year political fight. Lawmakers passed bills to force a sale or block the app. Courts stepped in with delays. Users kept making videos, but the future looked shaky.

Now, TikTok seals a deal for a new U.S. entity to avoid a ban. The new company is called TikTok USDS Joint Venture LLC. It will handle all U.S. operations. Adam Presser leads as CEO. He used to run TikTok’s operations and trust and safety teams. TikTok CEO Shou Chew joins as a director. This setup puts Americans in charge.

TikTok Seals Deal for New U.S. Entity to Avoid Ban

Who owns it? The three main investors each get 15% stakes. Oracle, a top U.S. tech firm, is one. Silver Lake, a private equity group, is another. MGX, from Abu Dhabi, rounds them out. Other backers include Michael Dell’s family investment firm. Smaller investors fill out the rest. Together, they own more than half, making it truly American-led.

TikTok says the joint venture will follow strict rules. It promises safeguards for national security. These cover data protections, algorithm security, content moderation, and software checks for U.S. users. No more fears of data going to China. The app stays fun for dances, challenges, and trends, but safer.

A seven-member board runs the show independently. Besides Chew, it has Timothy Dattels from TPG Global. Mark Dooley comes from Susquehanna International Group. Egon Durban is co-CEO of Silver Lake. Raul Fernandez leads DXC Technology. Kenneth Glueck works at Oracle. David Scott represents MGX. This mix of experts ensures smart decisions.

President Trump cheered the news on Truth Social. He called the new owners “Great American Patriots and Investors, the Biggest in the World.” He said TikTok will be an “important voice.” Trump pushed hard for this during his first term. Now, in his second, he sees it as a win.

For users, life goes on. Over 170 million Americans love TikTok. Creators earn money from videos. Businesses advertise there. The ban threat hung over it all. Schools blocked it at times. Parents worried about their kids’ screen time. But the app exploded in popularity. Short videos hooked everyone from teens to grandparents.

TikTok seals deal for new U.S. entity to avoid ban means stability. No more court battles or deadlines. The joint venture starts soon. It will store U.S. data on Oracle clouds. Algorithms get U.S. oversight. Moderators flag bad content faster. This builds trust with Washington.

Critics still watch closely. Some lawmakers want full proof it works. Others celebrate jobs saved. TikTok employs thousands in the U.S. It pays billions to creators. The economy benefits too.

ByteDance steps back from daily control. That eases spy fears. Investors like Silver Lake know tech deals. Oracle handles secure data. MGX brings global cash. Dell adds hardware smarts.

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