TikTok announced a new US joint venture meant to keep the app operating domestically, giving Americans majority ownership and board control while ByteDance retains a 19.9% stake. Critics question whether the structure meets US legal requirements to sever operational ties with ByteDance and address national security concerns.

TikTok said it has finalized a deal creating “TikTok USDS Joint Venture LLC” to keep TikTok operating in the United States. The company said Americans will have majority ownership and majority control of a seven-member board, while ByteDance will retain 19.9% of the venture; TikTok CEO Shou Chew will hold ByteDance’s only board seat. The venture is valued at $14 billion, with Silver Lake, Oracle, and MGX each holding 15% stakes, and other investors (including the Dell Family Office) holding smaller, undisclosed stakes. Two former TikTok employees will lead the new entity: Adam Presser as CEO and Kim Farrell as chief security officer. Donald Trump is claiming the deal satisfies a “qualified divestiture” to avoid a ban required under the relevant law, but notes it is unclear whether the arrangement resolves Congress’ national security concerns. Critics cited by The New York Times argue the law requires ending any “operational relationship” between ByteDance and TikTok in the US, and TikTok’s own release indicates ByteDance will maintain some control over US app operations.