Adam Presser Appointed CEO of U.S.-Controlled TikTok Venture
▼ Summary
– A consortium led by Silver Lake, Oracle, and Abu Dhabi’s MGX now controls 45% of TikTok’s U.S. operations through a new joint venture company.
– The joint venture’s leadership includes CEO Adam Presser and a board with members from TikTok, Oracle, and the investing firms, focusing on U.S. data security.
– Major investors in the consortium include firms linked to Michael Dell, Susquehanna International Group, and General Atlantic, but notably exclude Fox Corp. and the Murdoch family.
– The deal resolves a long-standing threat of a U.S. ban, prompted by security concerns, and ensures TikTok’s future operation in the country under American oversight.
– TikTok’s content recommendation algorithm will be retrained on U.S. user data and secured within Oracle’s U.S. cloud environment to address data privacy issues.
A major shift in ownership has solidified TikTok’s future in the American market, with a new joint venture now overseeing its U.S. operations. The newly formed TikTok USDS Joint Venture LLC is controlled by a consortium led by Silver Lake, Oracle, and Abu Dhabi’s MGX, which together hold a 45 percent stake. This restructuring directly addresses longstanding national security and data privacy concerns that had threatened the platform’s existence in the United States.
The ownership breakdown allocates 5 percent to other new investors, while 30.1 percent remains with affiliates of certain existing ByteDance investors. ByteDance itself retains a 19.9 percent share. Leadership of the joint venture has been entrusted to seasoned executives with deep industry and platform knowledge. Adam Presser, a longtime TikTok insider and former WarnerMedia executive, has been appointed Chief Executive Officer. Will Farrell, who has experience at both TikTok and Booz Allen Hamilton, will serve as Chief Security Officer, with direct responsibility for all data privacy and security protocols.
Governance will be handled by a board featuring prominent figures from the investing partners and TikTok itself. Members include TikTok CEO Shou Chew, Silver Lake co-CEO Egon Durban, and Oracle executive vice president Kenneth Glueck, among others. The full list of financial backers in the consortium was also disclosed, revealing a diverse group of institutional and private capital. Notable participants include investment vehicles affiliated with Michael Dell, General Atlantic, and French telecom entrepreneur Xavier Niel.
Conspicuously absent from the investor list are Fox Corporation and the Murdoch family, despite earlier speculation about their potential involvement. The completion of this complex arrangement concludes a protracted period of uncertainty. The platform faced a potential U.S. ban under a bipartisan bill, a situation that led to extended negotiations to create a structure satisfying regulatory requirements.
A cornerstone of the agreement is the commitment to place U.S. user data and core systems under domestic management. The company states that the content recommendation algorithm will be retrained on U.S. user data and secured within Oracle’s U.S. cloud environment. This move is designed to ensure American oversight of the systems that shape the user experience, though it may lead to noticeable changes in how the app functions for its stateside audience. With the deal finalized, the immediate threat to TikTok’s operations has been lifted, securing its place in the competitive U.S. social media landscape.
(Source: Hollywood Reporter)
