A new TikTok US joint venture addresses data security and national security concerns
TikTok will continue operating in the United States after its parent company, ByteDance, agreed to spin off its US operations into a new joint venture designed to protect American user data and national security, according to Euronews.
The video-sharing platform signed binding agreements with major investors Oracle, Silver Lake and UAE-based investment firm MGX to establish TikTok US.
The deal marks a major milestone for the app, which has more than 170 million users in the US, following years of political pressure and failed attempts to ban it since 2020.
The agreement is expected to be finalised on January 22, according to an internal memo seen by the Associated Press. TikTok CEO Shou Zi Chew confirmed the deal to employees.
“I want to thank you for your continued dedication and hard work. Your efforts will ensure TikTok continues to grow and thrive in the US and around the world,” Chew wrote.
Under the new structure, 50% of TikTok US will be owned by a group of investors, with Oracle, Silver Lake and MGX each holding 15%. ByteDance will retain a 19.9% stake, while affiliates of existing ByteDance investors will hold the remaining 30.1%. The company will have a seven-member board with a majority of US nationals.
US user data will be stored domestically on Oracle-managed systems. The TikTok algorithm will be retrained using only US user data to prevent external manipulation, while the US entity will oversee content moderation and domestic policies.
Photo: NBC News
