The Chinese company ByteDance, owner of the social network TikTok, has entered into an agreement to transfer its American division to a joint venture, control over which will be obtained by investors from the United States of America. This is reported by Axios with reference to the company's internal memorandum, reports UNN.
Details
According to the document, all official procedures for formalizing the agreement must be completed by January 22.
The new structure will be called TikTok USDS Joint Venture LLC. In it, 45% will belong to American investors - including Oracle, Silver Lake, and the investment fund MGX. Almost a third of the shares will be received by affiliated structures of current ByteDance investors, and about 20% will remain with ByteDance.
The joint venture will be responsible for protecting user data in the US, algorithm security, content moderation, and software. In particular, it will ensure "that the content feed is free from external manipulation."
A trusted security partner will be responsible for auditing and verifying compliance with agreed national security terms, and Oracle will become such a trusted partner upon completion of the deal.
It is noted that after all formalities are completed, the American joint venture will function as an independent company responsible for data protection in the US, algorithm security, content moderation, and software.
At the same time, TikTok's international divisions in the United States will be responsible for product consistency and separate commercial areas, including advertising and marketing.
Recall
US President Donald Trump signed an executive order approving the sale of American assets to the TikTok consortium by American investors.
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