00:00TikTok has just pulled off its biggest survival move yet.
00:12Facing an outright ban in the United States,
00:14the world's most powerful short video app has restructured its American operations
00:20and brought Washington, Wall Street, and Beijing to the same table.
00:23On Thursday, TikTok announced the creation of a new entity, TikTok USDS Joint Venture LLC,
00:32a majority American-owned company that will now operate TikTok's U.S. business.
00:38The move allows TikTok to continue serving over 200 million American users and 7.5 million U.S.
00:46businesses while complying with a U.S. law that demanded a drastic change in ownership.
00:52That law, passed in 2024 under President Joe Biden, required ByteDance to sell TikTok's
00:59U.S. operations or face a nationwide ban.
01:04The law cited concerns over data security and foreign influence.
01:14Under the new structure, ByteDance retains a 19.9% stake,
01:19staying below the 20% limit set by law.
01:22Three major investors, Silver Lake, Oracle, and Abu Dhabi-based MGX,
01:29each hold 15% stakes. Other investors include the Dell Family Office,
01:34Susquehanna Affiliates, General Atlantic, and others.
01:38U.S. user data will be stored entirely in Oracle's secure cloud environment with third-party
01:50cybersecurity audits. The U.S. entity will control trust, safety, and content moderation decisions for
01:57American users. The joint venture will be governed by a seven-member majority American board.
02:08TikTok executive Adam Presser becomes CEO of the U.S. entity, with Will Ferrell as chief security officer.
02:15Donald Trump welcomed the deal, claiming credit and thanking Chinese President Xi Jinping.
02:27Trump had previously warned about TikTok, but later delayed enforcement, citing its appeal with young
02:34voters. This deal doesn't just keep TikTok alive. It sets a global precedent. For TikTok, it's survival.
02:47For Washington, it's leverage. For big tech, it's a warning.
