TikTok today announced a long-awaited deal for a majority American-owned joint venture it said “will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users.”
The hugely popular video sharing social app also revealed that it has more than 200 million U.S. users.
The JV, built on the foundation of what the partners are calling the TikTok U.S. Data Security (USDS) organization, will operate as an independent entity governed by a seven-member, majority-American board of directors including CEO Shou Chew with Silver Lake co-CEO Egon Durbin and reps from Oracle, TPG, Susquehanna International Group, DXC Technology and MGX.
Oracle’s ownership has been of particular interest to Hollywood since founder and co-CEO Larry Ellison is the biggest investor in Paramount Skydance, run by his son David Ellison, and currently pursuing Warner Bros. Discovery.
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Adam Presser will be CEO of theTikTok USDS Joint Venture. Under his leadership, the Joint Venture will secure U.S. user data, apps, and the algorithm, while driving business growth for TikTok, CapCut, and additional apps and websites in the U.S. Presser hails from TikTok and WarnerMedia.
Will Farrell will be Chief Security Officer.
The JV’s three managing investors include Silver Lake, Oracle and MGX, each holding 15%, along with Dell Family Office, the investment firm of Michael Dell, founder, chairman and CEO of Dell Technologies; Vastmere Strategic Investments, an affiliate of Susquehanna International Group; Alpha Wave Partners; Revolution; Merritt Way, controlled and managed by partners of Dragoneer; Via Nova, an affiliate of General Atlantic; Virgo LI Inc., investment arm of a foundation established by Yuri and Julia Milner in support of science; and NJJ Capital, the family office of Xavier Niel, a French entrepreneur and pioneer in telecommunications.
TikTok parent ByteDance retains 19.9% of the JV.
Financial details weren’t disclosed.
The privately held company rarely releases user data but noted a few numbers today, saying the long-gestating agreement now enables “more than 200 million Americans and 7.5 million businesses to continue to discover, create, and thrive as part of TikTok’s vibrant global community and experience.”
The TikTok saga has been long and winding with a review by the Committee on Foreign Investment in the United States (CFIUS) during Donald Trump’s first term and a series of lawsuits. Under Joe Biden, Congress passed legislation that he signed into law requiring a sale by the Chinese or ban of TikTok’s U.S. operations. TikTok fought the ban but the Supreme Court upheld the law, setting a deadline that hit just as Trump took office for the second time in January of 2025. He effectively ignored the law, allowing TikTok to continue operating while he sought a deal, which was announced today.
TikTok’s CEO Chew had signaled in a memo to employees back in December that the JV would likely close Jan 22.