TikTok secures deal with White House to stay online

(Sharecast News) - TikTok is to set up a dedicated US company, it was confirmed on Friday, sidestepping a potential ban in America and drawing years of legal wrangling to a close. TikTok USDS Joint Venture will be 80.1% owned by American and global investors, with ByteDance - the app's Chinese parent - holding 19.9%. Its three biggest investors, Oracle, private equity firm Silver Lake and Abu Dhabi-based investment firm MGX, will own 15% each, with Oracle's American data centres hosting TikTok's prized content-recommendation algorithm.

The deal brings to an end a lengthy dispute between Washington and Beijing over the short video sharing app.

Donald Trump first moved to ban it in 2020, citing national security concerns and ByteDance's alleged links with Beijing. Joe Biden then signed a national security law requiring the company to either sell its US operations or face a ban.

But since returning to office, Trump has repeatedly declined to enact the law.

An estimated 200m Americas use the hugely popular platform, with Trump himself having more than 16m followers. Despite repeatedly flagging security concerns, Trump claimed on Friday that TikTok was responsible for him "doing so well with the Youth Vote" in the 2024 presidential elections.

He continued: "I am so happy to have helped in saving TikTok!

"It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and it will be an important Voice.

"I only hope that long into the future I will be remembered by those who use and love TikTok."

He also thanked Chinese president Xi Jinping for approving the deal. Beijing has yet to comment.

ByteDance said the venture would "operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation and software assurances for US users".

The current head of operations and trust and safety, Adam Presser, will lead the joint venture, with TikTok chief executive Shou Chew sitting on the board.