"After the years-long threat of a ban, TikTok has finalized the deal to create a U.S. entity that will allow the company to continue operating in the United States, reports Associated Press. The new version will operate under "defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation and software assurances for U.S. users," the company said in a statement. The original Chinese parent company, ByteDance Ltd., will still retain a 19.9% stake in the business."
"The company signed agreements with major investors-tech firm Oracle, Silver Lake, MGX, and more-to form TikTok USDS Joint Venture. Adam Presser, TikTok's previous head of operations, trust, and safety, will lead the new entity as its CEO, alongside a seven-member, majority-American board of directors that includes TikTok's CEO Shou Chew. As the BBC reports, TikTok claims that the algorithm and U.S. users' data will be protected in "Oracle's secure US cloud environment.""
TikTok finalized a deal to create a U.S. entity that will enable continued operations under defined safeguards including comprehensive data protections, algorithm security, content moderation, and software assurances. ByteDance Ltd. will retain a 19.9% stake. Major investors including Oracle, Silver Lake, and MGX signed agreements to form TikTok USDS Joint Venture. Adam Presser will serve as CEO, leading a seven-member majority-American board that includes TikTok CEO Shou Chew. TikTok says the algorithm and U.S. users' data will be housed in Oracle's secure US cloud environment. The action follows a January 2025 Supreme Court ruling and a temporary shutdown during a mandated sale deadline.
#tiktok-usds-joint-venture #bytedance-199-stake #data-and-algorithm-security #oracle-secure-us-cloud
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