TikTok avoids looming threat of US ban
A deal finalised by ByteDance on Thursday, 22 January, will see the Chinese owner of TikTok avoid a US ban on its social media platform, with President Donald Trump taking some of the credit, saying he was "so happy to have helped in saving TikTok".
TikTok has finalised a deal to avoid the looming threat of a ban in the US (Image source: © NPR NPR
The company set up a majority American-owned joint venture company, which will see its popular social media app used by millions of Americans continue.
The deal is a milestone after years of battles that began in August 2020, when Trump first tried unsuccessfully to ban the app over national security concerns.
Trump's response
In a post on his Truth Social account on the same day as the deal was announced, Trump said that TikTok will now be owned by "a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice".
He added, "I only hope that long into the future I will be remembered by those who use and love TikTok."
The US President also thanked Chinese President Xi Jinping for working with the US and "ultimately approving the deal".
"He could have gone the other way, but didn’t, and is appreciated for his decision," said Trump.
The deal
ByteDance retains a 19.9% stake in the joint venture, thus keeping its ownership below the 20% threshold stipulated by the law.
Three investors - Silver Lake, Oracle and Abu Dhabi-based AI investment fund MGX - each hold 15% stakes. Oracle's executive chairman, Larry Ellison, is a longtime Trump ally.
Other investors include Dell Family Office, affiliates of Susquehanna International Group and General Atlantic, and several other investment firms.
The joint venture will retain decision-making authority over trust and safety policies and content moderation for US users, while TikTok's global entities will manage international product integration and commercial activities, including e-commerce and advertising.
The joint venture will be governed by a seven-member, majority-American board including TikTok CEO Chew Shou Zi and executives from major investment firms.
TikTok executive Adam Presser was appointed CEO of the new entity, with Will Farrell serving as chief security officer.