"The JV is called TikTok USDS Joint Venture LLC and has published an announcement that reveals it has three "managing investors," namely software giant Oracle, private equity firm Silver Lake, and Dubai-based tech investment firm MGX. Each of those three holds 15 percent of the JV. ByteDance, the Chinese company that runs TikTok elsewhere, owns 19.9 percent of the venture. Dell Family Office, Michael Dell's investment firm, also invested in the JV."
"Oracle will have a huge role in TikTok's US operations, hosting American users' data in its cloud and serving as the consortium's "trusted security partner." The latter role will see it assist with ongoing review and validation of source code. The JV also plans to "retrain, test, and update the content recommendation algorithm on U.S. user data." The algo will be "secured in Oracle's U.S. cloud environment.""
"The JV hasn't said how much it paid for the privilege of operating TikTok in the USA, but hinted at how it will pay for it by revealing that it "will manage global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing." The reference to interoperability is important, as the JV plans to ensure "U.S. creators can be discovered and businesses can operate on a global scale." One of the JV's directors is TikTok CEO Shou Chew, a Singaporean national."
The joint venture is called TikTok USDS Joint Venture LLC with three managing investors — Oracle, Silver Lake, and MGX — each holding 15 percent. ByteDance owns 19.9 percent and Dell Family Office also invested. Oracle will host American user data in its cloud and serve as the consortium's trusted security partner, assisting with review and validation of source code. The JV will retrain, test, and update the content recommendation algorithm on U.S. user data secured in Oracle's U.S. cloud environment. The JV will manage global product interoperability and commercial activities including e-commerce, advertising, and marketing to enable U.S. creators and businesses. The seven-member board is majority-American and includes director Shou Chew. The JV named Adam Presser as CEO and Will Farrell as chief security officer. U.S. law requires ByteDance to find a U.S. buyer by January 19, 2025 or cease operations.
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