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TikTok has decided to sell approximately 80% of its US assets to a group of investors to ensure it can continue to operate without interruption. The move means the app will be available to more than 170 million US users. CEO Sue Cho told employees that the deal is a lifeline for the company.
In the deal, ByteDance and TikTok will sign an agreement with Oracle Silver Lake and MGX to establish a new joint venture called TikTok USDS Joint Venture LLC. Ownership will be split evenly between the new investors, with each holding 15%, ByteDance affiliates holding 3.1%, and ByteDance holding 19.9%. A new board of directors with a majority of US members will also be created to protect data and national security.
TikTok’s algorithm will be retrained using only US data to prevent manipulation from abroad. The joint venture will also oversee content moderation and policies within the US.
The US government has long suspected that TikTok is sending user data to China and using its infrastructure to spread propaganda. Since 2020, the app has faced the threat of being banned, but the deal, finalized on January 22, could end that uncertainty and allow it to continue operating without restrictions.
source: dw
In the deal, ByteDance and TikTok will sign an agreement with Oracle Silver Lake and MGX to establish a new joint venture called TikTok USDS Joint Venture LLC. Ownership will be split evenly between the new investors, with each holding 15%, ByteDance affiliates holding 3.1%, and ByteDance holding 19.9%. A new board of directors with a majority of US members will also be created to protect data and national security.
TikTok’s algorithm will be retrained using only US data to prevent manipulation from abroad. The joint venture will also oversee content moderation and policies within the US.
The US government has long suspected that TikTok is sending user data to China and using its infrastructure to spread propaganda. Since 2020, the app has faced the threat of being banned, but the deal, finalized on January 22, could end that uncertainty and allow it to continue operating without restrictions.
source: dw