Video and photo-sharing platform TikTok has created a new joint venture, TikTok USDS Joint Venture LLC.
This is in a bid to continue operations in the United States
Also, to avert a potential ban linked to concerns over its Chinese ownership.
The newly formed entity will have majority American ownership and is expected to serve more than 200 million users and 7.5 million businesses across the US.
According to reports, the agreement includes enhanced safeguards for data protection, algorithm security and content moderation, addressing long-standing national security concerns raised by US lawmakers.
US President Donald Trump welcomed the development and claimed credit for helping to facilitate the deal.
In a post on Truth Social late Thursday, Trump wrote:
“I am so happy to have helped in saving TikTok!”
Trump also expressed appreciation to Chinese President Xi Jinping for approving the arrangement, describing the deal as a breakthrough in resolving the platform’s future in the US.Under the agreement, TikTok USDS Joint Venture LLC will reportedly be owned by what Trump described as “a group of great American patriots and investors,”
Also, he added that the platform would remain “an important voice.”
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The move is seen as a major step toward securing TikTok’s long-term presence in the US amid years of regulatory scrutiny over its ties to China.
