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Business Matters: TikTok signs deal to sell U.S. unit to three American investors
TikTok’s Chinese owner, ByteDance, finalized a deal on Thursday to set up a majority American-owned joint venture company to avoid a U.S. ban on the popular social media app used by more than 200 million Americans.
The deal is a milestone for the short video app after years of battles that began in August 2020, when President Donald Trump first tried unsuccessfully to ban the app over national security concerns.
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TikTok USDS Joint Venture LLC will secure U.S. user data, apps and the algorithm through data privacy and cybersecurity measures, the company said.
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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% in the new joint venture, while ByteDance will retain 19.9%.
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