The remaining 80.1 percent stake is distributed among a consortium of managing investors, including Oracle, Silver Lake, and the Abu Dhabi-based firm MGX. Each of these primary partners holds a 15 percent share, with additional capital contributed by secondary investors such as Michael Dell’s family office. While the companies have remained silent on the financial valuation of the transaction, the new joint venture now assumes oversight of data protection, algorithm security, and content moderation across the TikTok ecosystem, including CapCut and Lemon8.
ByteDance Cedes Control of TikTok US in Multi-Investor Deal
A year after facing an existential threat from app store bans, TikTok has restructured its American operations into a new entity, TikTok USDS Joint Venture LLC. The deal slashes ByteDance’s ownership to 19.9 percent, effectively complying with the divestment mandate signed into law by President Biden last year.
Governance of the new structure rests with a seven-member board, which retains TikTok US CEO Shou Zi Chew as a participant. Adam Presser, previously the company’s head of operations and trust and safety, has been appointed CEO of the joint venture. Despite the significant shift in ownership, the company claims the arrangement will maintain user interoperability, allowing American creators and businesses to continue operating on a global scale.
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