Democratic Senator Ed Markey has called for a congressional investigation into the deal by TikTok’s Chinese owner, ByteDance, to establish a majority American-owned joint venture. The aim of this venture is to secure U.S. data and potentially avoid a U.S. ban on the popular social media app. TikTok is a social media platform used by over 200 million Americans, offering short-form videos. ByteDance is the Chinese technology company that owns TikTok.
Markey stated that the deal, finalised on Thursday, leaves several critical questions unanswered. He expressed concern over the lack of transparency from the White House regarding the agreement, particularly whether TikTok’s algorithm will be free of Chinese influence. Markey emphasised Congress’s responsibility to investigate the deal, demand transparency, and ensure that any arrangement truly protects national security while allowing TikTok to remain accessible online.
ByteDance announced that TikTok USDS Joint Venture LLC would secure U.S. user data, apps, and algorithms through various data privacy and cybersecurity measures, though it provided few details about the divestiture. The agreement provides for American and global investors to hold 80.1% of the venture, while ByteDance will retain a 19.9% stake. Oracle, Silver Lake, and MGX will each hold 15% as the venture’s three managing investors.
Other investors in the venture include Dell Family Office, Vastmere Strategic Investments, Alpha Wave Partners, Revolution, Merritt Way, Via Nova, Virgo LI, and NJJ Capital. The Chinese Embassy in Washington has stated its position on the TikTok issue remains consistent and clear but did not comment on whether it had approved the deal. The White House and TikTok have yet to respond to Markey’s criticism.
