"TikTok's Chinese owner, ByteDance, said it has finalized a deal on Thursday to set up a majority American-owned joint venture company to avoid a U.S. ban on the popular short video app used by more than 200 million Americans. The deal is a milestone for the video-sharing app after years of battles that began in August 2020, when U.S. President Donald Trump first tried unsuccessfully to ban it over national security concerns."
"The agreement provides for American and global investors, including cloud computing giant Oracle, private equity group Silver Lake and Abu Dhabi-based MGX, to hold a stake of 80.1 per cent in the new joint venture, while ByteDance will retain 19.9 per cent. A White House official told Reuters that the U.S. and Chinese governments had signed off on the deal. The Chinese Embassy in Washington did not immediately comment."
"Details of the deal are in line with those outlined in September, when Trump delayed enforcing a law that would ban the app unless its Chinese owner sold it. Former TikTok figures Adam Presser and Will Farrell have been appointed CEO and chief security officer respectively. The board of directors for the joint venture includes TikTok's CEO Shou Chew, who will lead TikTok's global businesses and strategy."
ByteDance finalized a deal to form a majority American-owned joint venture to prevent a U.S. ban on TikTok. American and global investors, including Oracle, Silver Lake and Abu Dhabi-based MGX, will hold 80.1% of the new entity while ByteDance retains 19.9%. The new app will operate under defined safeguards covering comprehensive data protections, algorithm security, content moderation and software assurances for U.S. users. Both U.S. and Chinese governments signed off on the deal. Adam Presser and Will Farrell were appointed CEO and chief security officer, and Shou Chew joins the joint venture board. Congress had passed a law threatening a January 2025 ban if divestiture did not occur.
Read at www.cbc.ca
Unable to calculate read time
Collection
[
|
...
]