TikTok has finalized a long-anticipated deal with several US-based investors, completing the agreement just days before a looming deadline that could have resulted in the app being banned in the US.
As part of the deal, TikTok has been divested from ByteDance, which now retains a 20% stake in the company. The remaining 80% ownership has been split among US investors, including Oracle, Silver Lake, MGX, and other participants. Oracle, Silver Lake, and MGX each hold a 15% stake in the company.
Data Security and Algorithm Control
A central element of the new joint venture is the handling of user data and algorithm operations for US users. Under the agreement, American users’ data will be protected, and TikTok’s recommendation algorithm for US users will remain hosted on servers located in the US.
Oracle will be responsible for hosting those servers and will also oversee content moderation efforts under the new structure.
The joint venture will also include TikTok-owned platforms CapCut and Lemon8. The agreement promises interoperability across these services, as well as access to international content for users.
Operations of the new entity will be overseen by a seven-member board, the majority of whom are Americans. The board includes Shou Zi Chew, Egon Durban, Kenneth Glueck, and David Scott.
TikTok has not disclosed additional details about the remaining investors or the long-term governance structure beyond the board appointments.
