TikTok signs agreement to create new US joint venture
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Oracle, Silver Lake, and Abu Dhabi’s state-owned investment firm MGX each plan to take a 15% stake. ByteDance will retain 19.9%.
1don MSN
TikTok has reached a deal with investors on its US business. Read the full memo from its CEO.
The deal comes more than a year after Congress passed a law that forced its owner ByteDance to divest its US operations or face a ban.
In a memo to staff reviewed by Reuters, TikTok CEO Shou Zi Chew confirmed that all US data “will be stored in a trusted and secure cloud environment in the United States run by Oracle,” with Oracle ultimately responsible for safeguarding US data.
The content recommendation algorithm that powers the online short video platform TikTok has once again come under the spotlight after the app's Chinese owner ByteDance signed binding agreements to form a joint venture that will hand control of operations of TikTok's U.
Going forward, nearly half of the new entity, TikTok USDS Joint Venture LLC, will be controlled by investors including Oracle, Silver Lake and MGX. Current ByteDance investor affiliates will own around 30 percent, and ByteDance itself will control just under 20 percent.
Just before the event's red carpet kickoff at the Hollywood Palladium, news broke that the U.S. deal for TikTok is officially happening.
This article originally published at Controversial TikTok star Ash Trevino arrested, accused of fraud.
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