WASHINGTON : The deal was finalized earlier this year by ByteDance, which agreed to restructure the platform’s U.S. business into a majority American-owned entity in order to address national security concerns and avoid a potential U.S. ban on the app, which is used by more than 200 million Americans.
The new entity, TikTok USDS Joint Venture LLC, will oversee U.S. user data, applications, and algorithms through enhanced data privacy and cybersecurity measures. Limited details have been disclosed about the broader structure of the divestiture.
According to the report, investors aligned with the administration gained control of TikTok’s U.S. operations as part of the arrangement. Companies including Oracle, investment firm Silver Lake, and Abu Dhabi-based investment group MGX are among the backers supporting the venture.
The investors initially paid approximately $2.5 billion to the U.S. Treasury Department when the transaction closed and are expected to make further payments until the total reaches about $10 billion.
U.S. Vice President JD Vance previously said the newly formed U.S. company would be valued at roughly $14 billion.
Officials from the administration have defended the fee arrangement, stating that it reflects the government’s role in negotiating the agreement with China and ensuring the protection of American user data while allowing TikTok to continue operating in the United States.
However, the decision has also drawn legal challenges. Earlier this month, Trump and U.S. Attorney General Pam Bondi were sued by retail investors linked to two rival social media platforms seeking to overturn the president’s approval of ByteDance’s restructuring deal.
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