TikTok's US Operations to be Managed by New JV with Oracle as Security Provider
TikTok's US operations are set to be managed by a new joint venture (JV) company, headquartered in the US. The agreement, authorized by President Donald Trump, sees US investors holding a majority stake, with ByteDance retaining less than 20%.
The JV will assume control of TikTok's US algorithm, source code, and content moderation processes. All recommendation models using US user data must be retrained and monitored by approved US security entities. Oracle has been designated as TikTok's US security provider, hosting all US user data on its infrastructure.
The JV's board will comprise individuals with backgrounds in national security and cybersecurity. ByteDance will have limited representation on the board but none on the security committee. The executive order delays enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act for 120 days to accommodate the transfer. The JV company is valued at around $14bn, according to US Vice President JD Vance.
The new JV company will operate TikTok's US application under majority US ownership, with Oracle as the security provider. This move aims to address national security concerns and maintain TikTok's US presence under new conditions.
