TikTok has Officially Formed a New US Entity, Avoiding Shutdown

TikTok has solidified a future in the US. After over a year of negotiation, the Chinese-based app has formed a separate entity to manage its United States operations so as to protect US customers’ data.

How it works:

• The new entity is named TikTok USDS Joint Venture LLC.

• The company will be overseen by a seven-member board that includes TikTok CEO Shou Chew.

• TikTok veteran executive Adam Presser will serve as CEO of the new venture.

• Another TikTok veteran, Will Farrell, will be Chief Security Officer.

• ByteDance, the Chinese company that owns TikTok internationally, will be a minority stakeholder, owning 19.9% of the company.

• Three tech companies, Silver Lake, Oracle, and MGX, will each own 15%.

• Vice President JD Vance stated that the new entity will be valued at “around $14 billion.”

• A report from Reuters says that the total value is “far below some analyst estimates."

• The entity has been mandated to secure US user data by utilizing Oracle’s cloud infrastructure.

• The venture’s cybersecurity program will be vetted by third-party experts on the standards of the National Institute of Standards and Technology and other official parameters.

• TikTok users will not face any differences in how they engage with the app.