TikTok officially closed its long-awaited deal to restructure and operate its US business under a new majority American-owned entity, ending the platform’s multi-year national security standoff.
The new venture, TikTok USDS Joint Venture LLC, will be run by three “managing investors” with equal stakes: Silver Lake, Oracle $ORCL ( ▼ 0.57% ) , and MGX, each holding 15%. ByteDance will retain a 19.9% ownership stake, while additional investors (including Michael Dell’s family office) round out the cap table.
How the new TikTok US structure works
The joint venture will be governed by a seven-person board with a majority of American directors. TikTok CEO Shou Chew will be on the board, and Adam Presser (formerly TikTok’s head of operations, trust, and safety) will serve as CEO of the US entity.
The announcement also emphasized that the structure is designed to secure US user data, the app, and the algorithm under this new framework.
Valuation: roughly a $14B business
TikTok didn’t disclose an official valuation for the newly structured venture, but VP JD Vance has previously referenced a market value of about $14 billion for TikTok’s US operations. That would put it slightly above Snap $SNAP ( ▼ 0.52% ) , and below Pinterest $PINS.
Why it matters
This deal ends a fight that has been brewing since August 2020, when President Donald Trump first pushed for a TikTok ban over national security concerns.
Trump celebrated the closing in a Truth Social post, and the deal has reportedly been signed off by both the US and Chinese governments (per Reuters).