"TikTok chief executive Shou Zi Chew is among them, and its Chinese owner ByteDance will retain a 19.9% stake in the business. The content recommendation algorithm at the heart of TikTok - determining which videos show up on the app's For You feed - has been licensed to tech firm Oracle. Headed by Trump ally Larry Ellison, Oracle already oversees TikTok US user data under a previous arrangement set up over security concerns called Project Texas."
"But the company will now secure more of the app, including by retraining and updating its recommendation algorithm based on US user data. TikTok says both the algorithm and US user data will be protected in "Oracle's secure US cloud environment". Something TikTok and those behind its new US joint venture will be keen to avoid is too much disruption to the app itself. The US is believed to be the platform's largest global market, with 200 million users, according to TikTok."
"And experts and analysts have warned changing TikTok too much or requiring users to move to a new app could put users and advertisers off. "Behind the scenes, TikTok is likely working hard to assure advertisers it will remain business as normal," Jasmine Enberg, co-CEO of Scalable, a media company and podcast focused on the creator economy, told news agency AFP."
TikTok will continue operating in the US under a new majority-American board that owns and operates a separate entity. The TikTok USDS Joint Venture LLC is backed by mostly US investors and governed by seven directors, including chief executive Shou Zi Chew. ByteDance will keep a 19.9% stake. Oracle has licensed the platform's recommendation algorithm and will retrain and update it using US user data. Oracle will house both the algorithm and US user data in its secure US cloud environment and already oversees US data under Project Texas. Measures aim to limit disruption for users and advertisers amid competition from Instagram Reels.
Read at www.bbc.com
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