TikTok Secures American Future with New U.S. Venture
San Francisco – TikTok, the popular video app, has reached an agreement with key investors to create a new U.S.-based business, ensuring its continued operation in the country.
The deal involves Oracle, Silver Lake, and MGX, who will form a joint venture overseeing TikTok’s American operations. According to reports, the agreement aims to address concerns about data security and potential foreign influence.
CEO Shou Zi Chew assured employees that the focus remains on serving users, creators, and the global TikTok community.
The new U.S. venture will have a board of directors with a majority of American members. Importantly, it will be subject to terms designed to protect American data and national security. User data will be stored locally, managed by Oracle. The app’s algorithm will also be refined using U.S. data to prevent unwanted manipulation.
This agreement marks a turning point after years of debate about TikTok’s place in the U.S. market. Concerns have been raised about the app’s ties to China-based ByteDance and the potential for the Chinese government to access user data or influence content.
With strong bipartisan support, Congress passed legislation requiring TikTok to find a new owner or face a ban. The Trump administration initially explored options for a sale and issued executive orders to keep the app running while seeking a resolution that addressed national security interests.
TikTok has a large presence in the United States, with over 170 million users. It has become a significant platform for news and information, particularly among younger Americans.
Oracle’s stock saw a rise in after-hours trading following the announcement, reflecting positive investor sentiment.
