ByteDance, owner of TikTok, signed agreements with investors to form a joint venture to operate TikTok’s U.S. app led by American and global investors, aiming to avoid a U.S. government ban. The deal will have American and global investors owning 80.1%, with ByteDance retaining a 19.9% stake in the new joint venture.

Under the deal, the joint venture will have authority over U.S. data protection, algorithm security, content moderation, and software assurance, operating independently. The White House stated the new joint venture will run TikTok’s U.S. app, although questions remain. The deal is set to end years of uncertainty over TikTok’s future in the U.S.

Democratic Senator Elizabeth Warren expressed concerns about a “billionaire takeover” of TikTok, questioning Trump’s involvement in the deal. The U.S. joint venture will have a consortium of investors holding 50%, with ByteDance retaining 19.9%. Trump previously mentioned prominent figures like Michael Dell and Rupert Murdoch would be part of the deal.

The 2024 law required TikTok to stop operating by January 19 unless ByteDance completed a divestiture of the app’s U.S. assets. Trump’s order issued in September stated the algorithm would be retrained and monitored by U.S. security partners. Oracle will serve as the “trusted security partner” for safeguarding U.S. user data.

Analysts expect the deal to pass through the approval process smoothly, given government involvement from the start. The agreement aims to address data protection and security concerns, with Oracle playing a key role in auditing compliance. The deal is seen as a significant step towards resolving TikTok’s future in the U.S.

Read more at Yahoo Finance: China’s ByteDance signs deal to form joint venture to operate TikTok US app