US EditionTikTok signs deal to sell US unit to American investor-led venture
The joint venture, led by Oracle, Silver Lake and MGX, will control 50% of TikTok's US operations, securing data protection and avoiding a nationwide ban, serving 170 million Americans.
- TikTok CEO Shou Zi Chew said in a memo that ByteDance Ltd. and TikTok Inc. signed binding agreements with three managing investors to form TikTok USDS Joint Venture LLC, effective January 22, 2025.
- Since 2020, pressure from lawmakers and courts and a 2024 bipartisan law pushed ByteDance Ltd. to divest U.S. TikTok, with legal rulings surviving U.S. Supreme Court appeals.
- The new venture is structured so that the U.S. entity will handle data protection, algorithm security, and moderation, with Oracle Corporation overseeing data protection and content policy approval.
- Consequently, over 170 million American users of TikTok can continue using the platform, and Oracle shares jumped more than 6% to $189.10 after-hours on the news.
- Meanwhile, the JV will retrain the recommendation algorithm on U.S. data `to ensure the content feed is free from outside manipulation`, while ByteDance Ltd., retaining minority stake, and Larry Ellison, Oracle co-founder and Trump confidante, add political scrutiny.
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423 Articles
TikTok's long-delayed plan to separate from his Chinese matrix, ByteDance, was launched on Thursday, when the video platform announced that a group of buyers, led by Oracle Corp, will acquire it. TikTok's executive director, Shou Chew, informed employees that the company and ByteDance signed binding agreements to create a joint venture in the United States, with majority participation of US investors, according to an internal memorandum that Blo…
The Chinese social network TikTok managed to escape a ban in the United States after signing an agreement with investment groups close to the Trump administration, allowing the creation of the US joint venture required by law, after lengthy and difficult negotiations.
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