US EditionTikTok signs deal to sell US unit to American investor-led venture
The new U.S. joint venture will hold majority American ownership and control data protection, algorithm security, and content moderation to comply with 2024 law.
- 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.
476 Articles
476 Articles
The Washington Hispanic
udgtvTikTok announced on Thursday an agreement to create a joint venture with mostly American investors that would allow him to continue operating in the United States, according to a document from the company. The platform is under threat of ban in the United States due to its Chinese ownership. According to an internal TikTok memorandum that the AFP had access to, the agreement stipulates that 45% of the joint venture's control will be assigned to …
TikTok U.S. joint venture won't impact Canadian users: cybersecurity expert
A cybersecurity expert says Canadian TikTok users likely won’t notice any changes to the social media app as major American investors sign a deal to form a new TikTok joint venture. “This deal happens to be based on U.S. law only and it’s really not that impactful for Canadians on a day-to-day basis,” said Robert […]
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