After months of negotiations and mounting pressure, TikTok has finalized a crucial deal with US-based investors, securing its continued operation in the United States. The agreement was completed just days before the next deadline, after which the platform was expected to face a possible ban due to ongoing ownership and data security concerns.
Under the new arrangement, TikTok has been officially divested from its parent company ByteDance. ByteDance will retain a 20% stake, while the remaining 80% ownership is now held by US entities. Oracle, Silver Lake, and MGX each hold a 15% stake, marking a significant shift in control toward American investors and addressing long-standing regulatory demands.
A key focus of the deal is the protection of American users’ data. The new joint venture is designed to keep TikTok’s US user data and algorithm operations on servers based in the United States. Oracle will be responsible for hosting this infrastructure and will also take charge of content moderation, reinforcing safeguards around data access and platform governance.
The agreement goes beyond TikTok alone, as the joint venture will also include CapCut and Lemon8. This move allows for smoother interoperability between platforms while ensuring international content remains accessible to users. Operations will be overseen by a seven-member board, largely made up of Americans, including TikTok CEO Shou Zi Chew and senior executives from Oracle, Silver Lake, and MGX.
With majority US ownership and stronger oversight in place, this deal marks a defining moment for TikTok’s future in the American market, offering greater regulatory confidence while allowing the platform to continue operating at scale.
Via: (Source), Image Credits: Created by ChatGPT using DALL·E (OpenAI).
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