Summary
TikTok has made a deal to keep operating in the U.S. by forming a new joint venture mainly owned by American investors. Part of the agreement requires TikTok's algorithm to be retrained using only U.S. data, which may change how content appears to American users. The deal follows long-standing concerns about data security and influence due to TikTok's Chinese ownership.
Key Facts
- TikTok can continue operating in the U.S. under a new joint venture mainly owned by American investors.
- ByteDance, TikTok’s Chinese owner, retains a 19.9% stake in the joint venture.
- Major investors in the deal include Oracle, Silver Lake, and MGX, with each holding a 15% share.
- The TikTok algorithm will be retrained using only U.S. data, which could affect content recommendations for users in the U.S.
- The algorithm changes aim to address concerns about data security and influence.
- President Trump played a role in negotiating the agreement with China.
- American administrators will oversee data and content moderation to ensure compliance.
