After months of negotiations, TikTok finalized a deal with several US-based investors days before the next deadline, after which TikTok would have allegedly been banned in the US. Today, TikTok was finally divested from ByteDance, which retains a 20% stake, while the other 80% is split between Oracle, Silver Lake, MGX and others. Each of those three companies gets a 15% stake.
Perhaps the most important bit of this deal is that the new joint venture will supposedly protect American users’ data and keep TikTok’s algorithm on US users’ data on its servers. Oracle will be responsible for hosting those and will also be in charge of content moderation.
The new joint venture will also cover CapCut and Lemon8, promising interoperability and international content available to all users.
Operation will be overseen by seven board members, most of whom are Americans. The list includes Shou Zi Chew, the Chief Executive Officer of TikTok, Silver Lake co-CEO Egon Durban, Oracle Executive Vice President Kenneth Glueck and MGX Chief Strategy and Safety Officer David Scott.
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