TikTok signs deal to form new US unit with investors, including Oracle, Silver Lake
TikTok has entered into agreements with Oracle, Silver Lake, and MGX to establish a new TikTok U.S. joint venture. This strategic move ensures the platform's continued operation within the United States.
TikTok has entered into agreements with Oracle, Silver Lake, and MGX to establish a new TikTok U.S. joint venture. This strategic move ensures the platform's continued operation within the United States.
The joint venture is structured such that half of it will be owned by a consortium of investors, including Oracle, Silver Lake, and MGX, each holding a 15% share. ByteDance will retain a 19.9% stake, while 30.1% will be held by affiliates of existing ByteDance investors. The specifics of the remaining investors have not been disclosed.
The U.S. venture will feature a seven-member majority-American board of directors. It will adhere to terms designed to protect U.S. national security and safeguard American user data. The data will be stored locally and managed by Oracle, ensuring continuity in user experience and advertising operations.
TikTok has entered into agreements with Oracle, Silver Lake, and MGX to establish a new TikTok U.S.
The TikTok algorithm will be retrained on U.S. data to maintain content integrity and prevent external manipulation. Additionally, the U.S. venture will handle content moderation and policy implementation domestically.
The agreement concludes a period of uncertainty regarding TikTok's U.S. operations. Prior legislative actions required the platform to find a new owner, separate from ByteDance, to avoid a nationwide ban. This development follows multiple executive orders and negotiations addressing national security concerns related to the platform's algorithm and data handling.
TikTok currently serves over 170 million users in the U.S., with a significant portion of its audience under the age of 30 relying on the platform for news consumption.
Based on reporting by Africanews.