TikTok unveiled a strategic restructuring of its U.S. operations this week through TikTok U.S. Data Security Joint Venture LLC (TikTok USDS JV), a new entity with 80.1% ownership by American and global investors. Announced on Thursday, the move aims to address national security concerns while preserving access for the platform's 200 million American users.
The joint venture will independently manage critical functions including user data protection, content moderation, and algorithm security. Oracle, Silver Lake, and MGX each secured 15% stakes, while ByteDance retains a 19.9% minority share. A seven-member board, including TikTok CEO Shou Chew, will oversee operations.
This restructuring enables continued operation of TikTok Shop and advertising services in the U.S. market while maintaining global interoperability with other TikTok platforms. Analysts view the arrangement as a blueprint for balancing data sovereignty concerns with cross-border digital services.
