What is the new structure for TikTok's U.S. operations?

ByteDance established 'TikTok USDS Joint Venture LLC,' a separate American entity where non-Chinese investors hold the majority stake, managing U.S. operations independently.

Who are the managing investors in TikTok's U.S. entity?

The managing investors are Oracle, Silver Lake, and MGX, each holding a 15% stake in the newly formed U.S. TikTok entity.

What role does Oracle play in the new TikTok U.S. structure?

Oracle serves as the security partner, responsible for managing U.S. user data, auditing compliance with security requirements, and overseeing algorithm updates.

Home / Business and Economy / ByteDance Splits US TikTok; Oracle, MGX Take Stake

ByteDance Splits US TikTok; Oracle, MGX Take Stake

28 Jan

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Summary

ByteDance's US TikTok entity now has non-Chinese ownership majority.
Oracle secures security partner role, managing data and algorithm updates.
MGX, an AI firm, gains influence over TikTok's future AI direction.

ByteDance Splits US TikTok; Oracle, MGX Take Stake

ByteDance, TikTok's parent company, has established a distinct American entity, "TikTok USDS Joint Venture LLC," to manage its U.S. operations. This strategic move aims to separate U.S. TikTok from its Chinese parent, addressing ongoing concerns regarding data privacy and foreign government influence.

This restructuring follows a 2024 law enacted by Congress, compelling the separation. Approximately 80% of the U.S. TikTok entity is now owned by non-Chinese investors, with ByteDance holding a 19.9% share. The venture licenses TikTok's recommendation algorithm from ByteDance and independently handles content moderation and data security.

The managing investor group comprises Oracle, Silver Lake, and MGX, each holding a 15% stake. Oracle, a cloud computing firm, acts as the security partner, overseeing data storage and algorithm updates. MGX, an AI-focused firm from the UAE, gains potential influence over TikTok's AI strategy.