TikTok has entered into a deal to create a joint venture in the US

Tik Tok, or rather the Chinese ByteDance, last Thursday announced the completion of a deal to create a joint venture with a controlling stake owned by Americans. This will avoid the app being banned in the US.

The deal marks a major milestone for the social media company after years of struggles that began in August 2020, xrust writes. At the time, President Donald Trump unsuccessfully tried to ban the app over national security concerns.

ByteDance said TikTok USDS Joint Venture LLC will ensure the security of US users' data, apps and algorithms through data privacy and cybersecurity measures.

The agreement provides that American and international investors will own 80.1% of the company's shares, and ByteDance — 19.9%.

The three managing investors in the TikTok USDS joint venture — cloud computing giant Oracle, private equity group Silver Lake and Abu Dhabi-based investment firm MGX — will each own a 15% stake.

A White House spokesman told reporters that the governments of the United States and China have approved the deal.

Donald has more than 16 million subscribers on TikTok. He said it was this app that helped him get re-elected. On December 22, he received a document from TikTok highlighting his popularity on the app. The White House also launched an official TikTok account in August.

Former USDS TikTok employees Adam Presser and Will Farrell have been appointed CEO and CSO, respectively. TikTok CEO Shaw Chu also joined the board of directors.

As TikTok reported, this project will retrain, test and update the TikTok content recommendation algorithm based on data from US users, and the algorithm itself will be hosted in the Oracle cloud environment in the US.

Xrust TikTok has entered into a deal to create a joint venture in the United States