The U.S. and China finalised a deal Thursday that will give a group of Trump-approved investors including Oracle control of TikTok’s U.S. unit, according to multiple outlets, keeping the app in the U.S. indefinitely following its delayed ban.
The deal was finalized Thursday.
Photo by Anna Barclay/Getty Images
Key Takeaways
- Tech giant Oracle, private equity firm Silver Lake and Abu Dhabi-based investment firm MGX will be the managing investors of the newly created U.S. business, known as the TikTok USDS Joint Venture.
- Each of the three investors hold a 15% stake in the company, with Oracle managing TikTok’s U.S. user data.
- TikTok’s content recommendation algorithm will be retrained, tested and updated by the joint venture, according to Thursday’s announcement.
- The joint venture will operate independently and be governed by a seven-member board of directors that includes Oracle CEO adviser Kenneth Glueck, Silver Lake co-CEO Egon Durban and MGX chief strategy and safety officer David Scott.
- Adam Presser, the head of operations and trust and safety at TikTok and a former Warner Bros. executive, will be the chief executive of TikTok’s U.S. business.
Key Background
In April 2024, former President Joe Biden signed the bill forcing TikTok’s parent company, ByteDance, to sell the app’s U.S. operations to an American-approved buyer or face a ban in the U.S.
The bill was signed after lawmakers voiced concerns TikTok could be used to influence public opinion in the U.S. and that ByteDance could be compelled by the Chinese government to hand over Americans’ sensitive data using the app.
The Supreme Court upheld the law allowing the ban, which led to a 14-hour TikTok blackout in the U.S. early last year that was ended by President Donald Trump’s executive order extending the deadline for a deal. The president signed multiple executive orders extending the deadline throughout 2025 until a deal was reached.
Crucial Quote
In a post on Truth Social, Trump wrote: “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 will be an important Voice…I only hope that long into the future I will be remembered by those who use and love TikTok.”
Trump also thanked Chinese President Xi Jinping “for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision.”
Look back on the week that was with hand-picked articles from Australia and around the world. Sign up to the Forbes Australia newsletter here or become a member here.
