After months of negotiations, TikTok has successfully struck a deal with several US-based investors just days before the impending deadline that could have led to a ban in the United States. TikTok is now officially divested from ByteDance, which retains a 20% ownership stake, while the remaining 80% is divided among Oracle, Silver Lake, MGX, and other investors. Each of the three main companies—Oracle, Silver Lake, and MGX—holds a 15% stake.
A key aspect of this new arrangement is the commitment to safeguarding the data of American users. The joint venture aims to ensure that TikTok's algorithm operates with data stored on US servers. Oracle will oversee the hosting and content moderation of this data.
This joint venture will also encompass CapCut and Lemon8, promoting interoperability and accessible international content for all users.
The operations will be managed by a board comprising seven members, the majority of whom are American. Notable members include Shou Zi Chew, CEO of TikTok; Egon Durban, co-CEO of Silver Lake; Kenneth Glueck, Executive Vice President of Oracle; and David Scott, Chief Strategy and Safety Officer of MGX.
