After months of negotiations, TikTok has finalized a deal with several US-based investors just days before a potential ban in the United States. The agreement marks TikTok's divestiture from ByteDance, which retains a 20% stake, while the remaining 80% is distributed among Oracle, Silver Lake, MGX, and others, with each of the three firms receiving a 15% stake.
One of the most significant aspects of this deal is the commitment to protect American users' data, ensuring that TikTok's algorithm remains on US servers. Oracle will be tasked with hosting and maintaining user data, as well as overseeing content moderation.
The joint venture will also encompass CapCut and Lemon8, promoting interoperability and access to international content for all users.
Operations will be managed by a board consisting of seven members, most of whom are Americans. The board includes TikTok's CEO Shou Zi Chew, Silver Lake's co-CEO Egon Durban, Oracle's Executive Vice President Kenneth Glueck, and MGX's Chief Strategy and Safety Officer David Scott.
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