Summary
TikTok has finalized an agreement to sell its U.S. operations to a joint venture led by American companies. This sale, involving Oracle, Silver Lake, and others, was necessary to address U.S. national security concerns about TikTok's Chinese ownership. The venture will manage U.S. data protection and ensure compliance with security standards.
Key Facts
- TikTok sold its U.S. operations to a joint venture controlled by American investors.
- The main investors include Oracle, Silver Lake, and Abu Dhabi-based MGX.
- ByteDance, TikTok's Chinese parent company, retains nearly 20% ownership of the new venture.
- This deal addresses U.S. national security concerns over foreign ownership.
- Oracle will handle security responsibilities, including data protection.
- The U.S. entity of TikTok is valued at around $14 billion.
- The agreement came ahead of a ban initiated by the Trump administration.
- Changes in deal terms occurred due to conflicts of interest and other negotiations.
