TikTok has just announced that it has formed a joint venture in the US to allow it to keep the social media app running in the US.
TikTok USDS Joint Venture
According to the announcement, Adam Presser will be the CEO of TikTok USDS Joint Venture, he previously served as the company Head of Operations and Trust and Safety.
The newly-formed venture is confirmed to run as an independent entity from the main company. Moreover, the USDS Joint Venture is said to “operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users.”
The new venture will have a seven-member board of directors, with majority being American. TikTok CEO Shou Chew mentioned that the board will be comprised of, DXG Technology CEO Raul Fernandez, MGX’s David Scott, Oracle’s Kenneth Glueck, Silver Lake co-CEO Egon Durban, Susquehanna International Group’s Mark Dooley, and TPG Global’s Timoth Dattels.
ByteDance, the parent company of TikTok retains 19.9% of the new venture. Meanwhile, Silver Lake, Oracle, and MGX are the new managing investors.
The joint venture allows the social media company to run in the US without it being fully selling the platform. The US government previously required the company to sell its US operations or be banned in the country.
The US-based joint venture will now have content-recommendation algorithm housed in Oracle’s American data centers. Additionally, it will be retrained, tested, and updated on US user data.
This also allow siblings apps like CapCut, Lemon8, and other unspecificed services and websites to continue runnig in the US.
Ram found his love and appreciation for writing in 2015 having started in the gaming and esports sphere for GG Network. He would then transition to focus more on the world of tech which has also began his journey into learning more about this world. That said though, he still has the mentality of "as long as it works" for his personal gadgets.
