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TikTok finalizes a deal to form a new American entity

TikTok has established a new American entity to prevent a potential ban in the United States. This development comes as the platform is widely used by over 200 million Americans. The new joint venture will involve major investors, including Oracle,…

TBy Thomas BlakeJan 23, 20261 min read

TikTok has established a new American entity to prevent a potential ban in the United States. This development comes as the platform is widely used by over 200 million Americans. The new joint venture will involve major investors, including Oracle, Silver Lake, and MGX, and is designed to safeguard national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users. American users will continue to use the same application.

Adam Presser, formerly TikTok's head of operations and trust and safety, will lead the new entity as CEO. He will be supported by a seven-member board of directors, primarily American, which includes TikTok CEO Shou Chew.

Data Protection and Algorithm Management

The joint venture emphasizes data protection, with U.S. user data being stored locally in a system managed by Oracle. The content recommendation algorithm will be retrained and updated based on U.S. user data. This algorithm has been a focal point in discussions about TikTok's security, with previous Chinese regulations requiring it to remain under Chinese control. Under the new agreement, ByteDance will license the algorithm to the U.S. entity for retraining.

TikTok has established a new American entity to prevent a potential ban in the United States.
Thomas Blake · Thehackingpost

The managing investors, Oracle, Silver Lake, and MGX, each hold a 15% share in the new venture. Additional investors include the investment firm of Michael Dell. ByteDance maintains a 19.9% stake in the joint venture.

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Based on reporting by Africanews.

AI transparency. This article was produced with the assistance of artificial intelligence and published under human editorial oversight. AI systems can make mistakes. Read how we use AI (EU AI Act, Art. 50).
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