"ByteDance, TikTok's Chinese parent company, recently established a separate American entity to run the app's U.S. operations. This restructuring aims to separate U.S. TikTok from its Chinese parent, addressing concerns about data privacy and foreign control. The move came after years of pressure from lawmakers, who feared the Chinese government's potential access to Americans' data. In 2024, Congress enacted a law, mandating that TikTok's U.S. operations be separated from ByteDance."
"Under the new structure, about 80% of the U.S. TikTok entity is owned by non-Chinese investors, with ByteDance keeping only a 19.9% share. The newly formed entity, "TikTok USDS Joint Venture LLC," licenses TikTok's recommendation algorithm from ByteDance and independently manages content moderation, and oversees data protection, algorithm security, and software controls. The managing investor group consists of Oracle, the private equity firm Silver Lake, and the investment firm MGX. Each holds a 15% stake, totaling 45% of the U.S. business."
ByteDance created a separate American entity to run TikTok's U.S. operations to separate U.S. TikTok from its Chinese parent and reduce data privacy and foreign control risks. Congress enacted a 2024 law mandating that separation. About 80% of the U.S. entity is owned by non-Chinese investors while ByteDance retains 19.9%. The new TikTok USDS Joint Venture LLC licenses the recommendation algorithm from ByteDance and independently manages content moderation, data protection, algorithm security, and software controls. The managing investor group — Oracle, Silver Lake, and MGX — each owns 15%, totaling 45%. Oracle will act as security partner, audit compliance, manage U.S. data storage, and oversee algorithm updates. MGX is an AI-focused UAE investment firm created by Mubadala and G42 that invests in semiconductors and data centers.
Read at TechCrunch
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