TikTok Deal Done

The TikTok deal is finally complete, with ByteDance’s ownership stake reduced to 19.9% as part of a US-China agreement, marking a significant shift in the app’s governance structure following President Biden’s divest-or-ban law in 2024. The new entity, TikTok USDS Joint Venture LLC, has now been established after approval from both countries was received on schedule, bringing an end to the app’s brief disappearance from US app stores last year. In a major concession to regulatory pressure, ByteDance has agreed to relinquish its majority control of the app in exchange for maintaining a significant stake. The remaining 80.1% ownership is now divided among several key investors, including Silver Lake, Oracle, and Abu Dhabi’s MGX investment firm, which have secured substantial stakes as managing investors. The TikTok USDS Joint Venture LLC marks a pivotal moment in the app’s evolution, one that underscores the growing regulatory scrutiny of global tech giants. As the deal brings an end to the uncertainty surrounding the app’s future in the US, users can now look forward to seeing how this new governance structure will shape the platform’s trajectory going forward.