"TikTok's US workers can finally breathe a sigh of relief. The company announced Thursday that it has closed a deal to spin off parts of its US business, including CapCut and Lemon8, in a new joint venture with an investor group. Adam Presser is leading the new venture, according to the company's announcement. Presser has worked at TikTok for nearly four years, most recently leading operations and trust and safety. The venture's seven-man, majority-American board includes TikTok's CEO Shou Chew."
"The agreement should keep the US government off its back as TikTok's parent, ByteDance, now owns just under 20% of the new US venture. That ownership stake meets a divestment requirement set by a 2024 US sell-or-ban law targeting TikTok and other apps with owners based in countries like China, which the US has deemed a foreign adversary. TikTok's new US owners include tech company Oracle, private-equity firm Silver Lake, and Abu Dhabi investment firm MGX, each of which owns 15% of the new venture."
TikTok closed a deal to spin off parts of its US business, including CapCut and Lemon8, into a new joint venture led by Adam Presser. The venture has a seven-member, majority-American board that includes CEO Shou Chew. ByteDance will hold just under 20% of the new US entity, meeting a 2024 US sell-or-ban divestment requirement. Oracle, Silver Lake, and Abu Dhabi firm MGX each own 15% and will act as managing investors focusing on data security. Key commercial areas like e-commerce, advertising, and marketing will remain under ByteDance control.
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