"The TikTok USDS Joint Venture, announced on Friday, is 19.9 per cent owned by ByteDance. Oracle, Silver Lake and MGX each hold 15 per cent, while affiliates of existing ByteDance investors control 30.1 per cent. The Chinese government approved the deal, according to two people familiar with the matter. Beijing previously opposed a direct divestiture, revising the export control list in 2020 to include technologies like TikTok's recommendation algorithm, which require official approval for export."
"The arrangement has been widely compared with Apple's 2018 move to transfer mainland Chinese iCloud user data to Guizhou-Cloud Big Data (GCBD), according to Chinese media. Media outlet The Paper noted that Apple did not own a stake in AIPO Cloud, while Beijing-based ByteDance retained algorithms and intellectual property rights and remained the largest single shareholder of the new joint venture."
TikTok launched a US joint venture tasked with safeguarding the American content ecosystem while e-commerce, advertising and marketing remain with existing US entities. ByteDance holds a 19.9 per cent stake; Oracle, Silver Lake and MGX each hold 15 per cent, and affiliates of existing investors control 30.1 per cent. Beijing approved the arrangement after previously opposing direct divestiture and expanding export controls in 2020 to cover recommendation technologies. The joint venture will retrain the content recommendation algorithm on US user data under a ByteDance license and will provide safeguards for other ByteDance apps in the US, including CapCut and Lemon8.
Read at South China Morning Post
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