TikTok partners with US investors to secure operations

TikTok has signed an agreement with a group of American investors to establish a joint venture, creating a pathway to continue operations in the U.S. while mitigating the risk of a potential ban due to its Chinese ownership.

TikTok CEO Shou Zi Chew stated that the agreement was approved by both the company and its parent firm, ByteDance.

The proposed U.S. entity will include key investors such as Oracle, Silver Lake, and Abu Dhabi-based stakeholders.

Under the agreement, current ByteDance investors will hold approximately one-third of the new company, while ByteDance itself will retain a maximum of 20 percent ownership.

According to U.S. media, this move aligns with legislation enacted during former President Joe Biden’s tenure, which compelled ByteDance to either divest TikTok’s U.S. operations or face the risk of a ban. U.S. lawmakers have expressed concerns that Beijing could access user data or influence public opinion via TikTok’s algorithms.

Shou Zi Chew noted that once finalized, the American joint venture will operate independently, maintaining control over U.S.-based data security, algorithm protection, content monitoring, and software oversight.

Meanwhile, TikTok Global will continue to manage its international operations, including advertising, marketing, and e-commerce.