TikTok seals deal for new US joint venture to avoid American ban
Note: AI technology was used to generate this article’s audio.
- ByteDance finalizes US-led joint venture to keep TikTok operating in America.
- US investors hold majority 80.1% stake; ByteDance retains 19.9%.
Chinese company ByteDance, owner of TikTok, announced Thursday the finalization of a deal to establish a US-led joint venture, allowing the popular app to continue operating in the United States, where more than 200 million people use it.
The new company, named TikTok US DS Joint Venture LLC, will secure American user data, apps, and algorithms through enhanced data privacy and cybersecurity measures. US and global investors will hold an 80.1% stake, while ByteDance retains 19.9%.
Background
The deal resolves years of regulatory battles that began in August 2020, when former President Donald Trump attempted to ban TikTok over national security concerns, a move that ultimately failed.
Read more: Trump to sue New York Times over unfavorable opinion poll
A White House official confirmed that both the US and Chinese governments approved the agreement.
Trump reacts
Donald Trump praised the deal, saying on Truth Social that he was “very happy to have helped save TikTok,” highlighting its role in engaging young voters during the 2024 presidential election. He also thanked Vice President J.D. Vance, his administration, and Chinese President Xi Jinping for cooperating to finalize the agreement.
