Summary
TikTok has completed a deal to split its U.S. operations from its global business. This agreement involves creating a new company, TikTok USDS Joint Venture LLC, to manage and protect U.S. user data and ensure the app can continue operating in the United States.
Key Facts
- TikTok finalized a deal to separate its U.S. app from its global operations.
- This move addresses U.S. concerns about national security and data privacy related to its Chinese owner, ByteDance.
- A new company, TikTok USDS Joint Venture LLC, will handle U.S. user data and secure the app's operations in the U.S.
- The new company's board of directors will mostly consist of Americans.
- Oracle, a U.S. tech company, will manage and secure the data of TikTok's American users.
- ByteDance retains a 19.9% stake in the new company.
- Other major investors, like Oracle and Silver Lake, hold significant stakes in TikTok's U.S. operations.
- The algorithm, crucial to TikTok's operations, will be under the oversight of the new joint venture, aiming to protect its 'secret sauce.'
