Summary
The U.S. and TikTok's parent company ByteDance have reached a deal because of concerns about data privacy. TikTok will operate under a new company structure in the U.S., splitting from ByteDance's global operations, to address security worries. The new arrangement includes ByteDance licensing TikTok's algorithm to a U.S. entity, with Oracle as part of the new consortium managing U.S. user data.
Key Facts
- TikTok's parent company, ByteDance, has restructured TikTok's U.S. operations amidst data privacy concerns.
- President Trump had previously tried to remove TikTok from U.S. stores due to these concerns.
- ByteDance initiated "Project Texas" to store U.S. user data locally and moved its headquarters outside of China.
- A new agreement separates TikTok's U.S. business from its global operations, involving a consortium including Oracle.
- The U.S. remains a critical market for TikTok with around 200 million users and a $10 billion revenue share.
- ByteDance retains a 19.9% stake in TikTok's U.S. business.
- TikTok's algorithm will now be licensed to a U.S.-based entity, impacting how content is delivered to users.
- The changes could affect TikTok's advertising revenue and user engagement in the U.S.
