"The TikTok divestment deal is done, and the company's CEO is jubilant. On Thursday, TikTok's top boss, Shou Chew, sent a message to US staffers, toasting the "great news" and thanking them for their "resilience." He also announced that "more than 200 million Americans now come to TikTok to be entertained, learn, and grow their business with a broader global community." Chew has good reason to take a victory lap."
"The deal involved setting up a joint venture with an investor consortium that now owns just over 80% of the new US entity. The group, led by managing investors Oracle, Silver Lake, and MGX, is tasked with securing US user data, content moderation, and trust and safety. ByteDance, meanwhile, gets around 20% ownership in the new venture. It will also maintain control of key TikTok business lines, such as e-commerce, marketing, and advertising."
TikTok completed a US divestment by forming a joint venture with an investor consortium that owns just over 80% of the new US entity. Oracle, Silver Lake, and MGX lead the investor group and include individual investors such as Michael Dell. The investor consortium will secure US user data, oversee content moderation, and manage trust and safety. ByteDance retains about 20% ownership and control over e-commerce, marketing, and advertising business lines. US employees will be split between ByteDance and the new TikTok USDS Joint Venture LLC. The arrangement preserves US operations without disconnecting US users from the global platform and avoids a potential US ban under the 2024 sell-or-ban law. More than 200 million Americans use the platform for entertainment, learning, and business growth.
Read at Business Insider
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