ByteDance’s Joint Venture Deal to Avert US TikTok Ban

ByteDance’s Joint Venture Deal to Avert US TikTok Ban

China‑based tech giant ByteDance Ltd. , the parent company of TikTok , has taken a major step to keep the wildly popular short‑video app operating in the United States by signing binding agreements to form a new joint venture with U.S. and global investors, ending years of uncertainty over a possible ban. Under the deal, ByteDance will transfer control of TikTok’s U.S. operations to a newly formed company — TikTok USDS Joint Venture LLC — in which American and international partners will hold the majority stake.  The new venture is structured to comply with a 2024 U.S. law requiring apps owned by “foreign adversaries” to divest or face removal from the U.S. market. Key investors in the joint venture include Oracle , private equity firm Silver Lake , and Abu Dhabi‑based MGX , each taking significant ownership alongside other ByteDance investor affiliates. ByteDance will retain a 19.9 % minority stake , the maximum allowed for a Chinese company under U.S. regulations, while the consortium of new…