TikTok is now under new ownership in the US , but what's next? More than a year after its temporary disappearance from app stores , TikTok in the US is now part of a new entity , TikTok USDS Joint Venture LLC.
With both U.S. and Chinese approvals closing on the timeline set in December, ByteDance in the new joint venture is capped at 19.9%, to satisfy the terms of the Divestment or Takeover Act, signed into law in 2024 by former U.S. President Joe Biden.
The law adopted in the spring of 2024 by the US Congress aimed to prevent Chinese authorities from gaining access to the personal data of TikTok users in the US.
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TikTok has admitted that its employees in China had access to user data, but denies sharing it with the Chinese government.
The remaining 80.1% is owned by investment firm Silver Lake, Oracle and Abu Dhabi investment firm MGX — the three “managing investors” who now hold 15% stakes — and several other smaller investors, such as Michael Dell’s family investment firm.
The press release announcing the deal did not say how much those stakes cost or provide details about the potential launch of a new app in the U.S. However, it said the consortium’s oversight of “comprehensive data protections, algorithm security, content moderation and software safeguards for U.S. users” would apply to TikTok, video editor CapCut, Lemon8 and “a portfolio” of other apps and services.
For now, most of what we know concerns the joint venture's seven-member board of directors , which includes TikTok's US CEO, Shou Zi Chew , and TikTok's former head of operations and safety and trust, Adam Presser , who now serves as CEO.
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Interoperability allows the Consortium to provide U.S. users with a global TikTok experience , ensuring U.S. creators can be discovered and businesses can operate on a global scale. TikTok’s global entities in the U.S. will manage product interoperability and certain commercial activities, including e -commerce, advertising and marketing .
The TikTok USDS Joint Venture’s mandate is to secure U.S. user data, applications, and algorithm through comprehensive data protection and cybersecurity. It will protect the content ecosystem through strong trust and security policies and content moderation, ensuring ongoing accountability through transparency reporting and third-party certifications.
TikTok USA: Emphasis on data protection/algorithm security
US user data will be protected by the USDS Joint Venture in Oracle's secure cloud environment in the US. The Joint Venture will operate a comprehensive data protection and cybersecurity program that will be audited and certified by third-party cybersecurity experts.
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The program will comply with major industry standards, including NIST CSF and 800-53 and ISO 27001 as well as CISA Security Requirements for Restricted Transactions.
Regarding algorithm security, the Consortium will retrain, test, and update the recommendation content based on US user data.
