Trump Applauds TikTok's New Ownership Structure, Extends Gratitude to Chinese Leader Xi Jinping
Former United States President Donald Trump, in a statement issued on Friday, enthusiastically welcomed the newly finalized agreement for TikTok's operations in America and expressed his appreciation to Chinese President Xi Jinping for his role in facilitating the arrangement. The landmark deal establishes a joint venture with majority American ownership to oversee the popular short-form video platform's activities within the United States.
Trump's Celebratory Remarks on the TikTok Agreement
"I am so happy to have helped in saving TikTok!" Trump declared, emphasizing his personal involvement in the process. He characterized the new ownership group as "a group of Great American Patriots and Investors, the Biggest in the World" and predicted the platform would continue to serve as "an important Voice."
The former president also highlighted TikTok's influence on his political fortunes, crediting the app with enhancing his appeal among younger demographics. "It was responsible for my doing so well with the Youth Vote in the 2024 Presidential Election," he asserted. Looking ahead, Trump expressed a personal hope: "I only hope that long into the future I will be remembered by those who use and love TikTok."
Acknowledgments to Key Figures in the Deal
Trump extended his thanks to several individuals instrumental in reaching the agreement. He specifically mentioned US Vice President JD Vance and other administration officials who supported the negotiations. Most notably, he acknowledged the cooperation of Chinese President Xi Jinping.
"I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal," Trump stated. He recognized the diplomatic significance of the decision, adding, "He could have gone the other way, but didn't, and is appreciated for his decision."
Details of the TikTok USDS Joint Venture LLC
Trump's comments coincided with TikTok's official confirmation of the formation of TikTok USDS Joint Venture LLC, a newly created entity designed to manage the platform's US business. This structure aims to resolve longstanding national security concerns and avert a potential ban that had been looming due to ByteDance's Chinese ownership.
The company outlined the joint venture's ambitious scope:
- Catering to over 200 million American users.
- Serving approximately 7.5 million businesses in the United States.
- Implementing enhanced operational safeguards in critical areas:
- Data protection protocols.
- Cybersecurity measures.
- Content moderation systems.
- The app's recommendation algorithm.
Ownership Structure and Key Investors
Under the finalized ownership framework:
- US and international investors will collectively control 80.1% of the venture.
- ByteDance, the Chinese parent company, will retain a 19.9% minority stake.
The investment consortium includes several prominent entities:
- Oracle, Silver Lake, and Abu Dhabi-based MGX are among the largest stakeholders, each acquiring a 15 percent share.
- Smaller equity portions have been allocated to the Dell Family Office, Alpha Wave Partners, Revolution, and NJJ Capital.
Background and Regulatory Context
This agreement concludes several years of intense political scrutiny and regulatory challenges in Washington. The pressure on TikTok's US operations began escalating in 2020 when President Trump initially moved to block the app, citing national security risks. More recently, legislation enacted during former President Joe Biden's administration mandated that ByteDance divest its US business or face an outright ban in what is TikTok's largest market.
Governance and Leadership of the New Entity
TikTok has announced that its US operations will function as an independent company governed by a seven-member board of directors, with American directors constituting the majority. Adam Presser has been appointed as the Chief Executive Officer of the US business. His primary responsibilities will include ensuring the security of US user data and driving growth initiatives across TikTok and its associated applications.
