Adam Presser has been appointed executive director of the new entity, and Will Farrell will serve as director of security
O TikTok announced this Thursday (22) that it created a joint majority American company to operate the platform in United Statess, which will allow the company to avoid a ban related to its Chinese ownership. Called TikTok USDS Joint Venture LLC, the company will serve more than 200 million users and 7.5 million companies, while implementing strict measures for data protection, algorithm security and content moderation, as indicated in a statement.
The combined company will be managed by a seven-member, majority-American board that includes TikTok CEO Shou Chew and executives from major investment firms. Adam Presser has been named executive director of the new entity, and Will Farrell will serve as director of security.
The new structure responds to a law passed during the term of President Donald Trump’s predecessor, Joe Biden, which forced Chinese company ByteDance to sell TikTok’s US operations or face a ban in its most important market. ByteDance retains a 19.9% stake in the joint company, and thus keeps its ownership below the 20% limit stipulated by law.
Silver Lake, Oracle and Abu Dhabi-based AI investment fund MGX each have a 15% stake. Oracle Chief Executive Larry Ellison is a longtime Trump ally. Other investors include Dell Family Office, affiliates of Susquehanna International Group and General Atlantic, as well as several other firms.
The joint company will retain decision-making authority over trust and safety policies and content moderation for American users. In turn, TikTok’s global entities will manage international product integration and commercial activities, including e-commerce and advertising.
Under the agreement, American users’ data will be stored in Oracle’s cloud, and its cybersecurity will be audited by external experts to comply with federal regulations, TikTok said.
*With information from AFP
