Share this @internewscast.com
Topline
A significant agreement has been reached between the United States and China, securing the future of TikTok in the U.S. The deal, finalized on Thursday, involves a consortium of investors approved during the Trump administration, with Oracle taking a leading role, as reported by multiple sources.
This new arrangement sees Oracle, along with the private equity firm Silver Lake and the Abu Dhabi-based investment firm MGX, as the primary stakeholders in a newly established entity, the TikTok USDS Joint Venture, which will oversee TikTok’s operations in the United States.
Each of these key investors holds a 15% ownership in the venture, with Oracle responsible for managing the data of TikTok’s American users, ensuring compliance with U.S. data security standards.
As part of this agreement, the TikTok USDS Joint Venture will oversee the retraining, testing, and updating of TikTok’s content recommendation algorithm, aiming to enhance its accuracy and effectiveness.
The joint venture will function autonomously with a board of directors consisting of seven members. Notable figures include Oracle CEO adviser Kenneth Glueck, co-CEO of Silver Lake Egon Durban, and David Scott, MGX’s chief strategy and safety officer.
Adam Presser, who currently leads operations and trust and safety at TikTok, and has a background with Warner Bros., will step into the role of CEO for TikTok’s U.S. operations, guiding the new venture.
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.
Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here.
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.
Further Reading
TikTok Spied On Forbes Journalists (Forbes)
TikTok Creators’ Financial Info, Social Security Numbers Have Been Stored In China (Forbes)
