"Half of the new TikTok U.S. joint venture will be owned by a consortium of investors among them Oracle, Silver Lake and MGX will each hold a 15% share. Another 30.1% will be held by affiliates of existing ByteDance investors and 19.9% will be retained by the China-based ByteDance, according to the memo. The U.S. venture will have a new, seven-member majority-American board of directors, the memo said."
"The U.S. venture will also oversee content moderation and policies within the country. It will also be subject to terms that protect Americans' data and U.S. national security. U.S. user data will be stored locally in a system run by Oracle. TikTok's algorithm the secret sauce that powers its addictive video feed will be retrained on U.S. user data to ensure the content feed is free from outside manipulation, the memo said."
"The deal marks the end of years of uncertainty about the fate of the popular video-sharing platform in the United States. After wide bipartisan majorities in Congress passed and President Joe Biden signed a law that would ban TikTok in the U.S. if it did not find a new owner in the place of China's ByteDance, the platform was set to go dark on the law's January 2025 deadline."
TikTok signed binding agreements to sell its U.S. business to three American investors: Oracle, Silver Lake and MGX, with the deal expected to close Jan. 22. The new U.S. joint venture will allocate 15% ownership to each of those three investors, 30.1% to affiliates of existing ByteDance investors, and 19.9% will remain with ByteDance. A seven-member majority-American board will govern the venture. U.S. user data will be stored locally by Oracle and the recommendation algorithm will be retrained on U.S. data. The venture will manage U.S. content moderation and operate under terms meant to protect American data and national security. Congressional and presidential actions had created a deadline that drove the sale process.
Read at www.mercurynews.com
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