"Is TikTok really selling its US business? Kind of. TikTok has reached an agreement that would give it a new set of owners in the US as part of a joint-venture agreement. Larry Ellison's Oracle, Abu Dhabi investment firm MGX, and private-equity firm Silver Lake are all coming on as managing investors in the US spin-off. But how much influence will these investors have over the money-making side of the business? Not much, according to an internal memo TikTok CEO Shou Chew sent to employees on Thursday, viewed by Business Insider."
"The US joint venture, built on the foundation of the current TikTok US Data Security (USDS) organization, will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance, while TikTok global's US entities will manage global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing. As laid out by Chew, TikTok's new investors aren't going to be in the driver's seat on key business lines like TikTok Shop or ad sales, even if they may still participate in the profits of the business. TikTok global, which will remain under ByteDance, will still run the show."
TikTok will spin parts of its US operations into an independent joint venture focusing on US data protection, algorithm security, content moderation, and software assurance. Oracle, Silver Lake, and Abu Dhabi's MGX will serve as managing investors for the new US entity and concentrate on national-security-related tasks and data management. ByteDance will retain control of global product interoperability and core commercial activities, including TikTok Shop, advertising, and marketing, allowing the global business to continue running key monetization lines while new investors may participate financially without managing day-to-day ad or e-commerce operations.
Read at Business Insider
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