<\/p>\n
TikTok said Thursday it has signed a joint venture deal with investors that would allow the company to maintain operations in the United States and avoid a ban over its Chinese ownership.<\/p>\n
The move caps a lengthy tussle over the hugely successful video-sharing app in the world\u2019s largest economy, where TikTok says it has more than 170 million users.<\/p>\n
According to an internal memo seen by AFP, TikTok CEO Shou Chew told employees that the social media company and its Chinese owner ByteDance had agreed to the new entity.<\/p>\n
<\/p>\n
Oracle, Silver Lake and Abu Dhabi-based MGX are on board as major investors, the memo said. Oracle\u2019s executive chairman Larry Ellison is a longtime ally of US President Donald Trump.<\/p>\n
\u201cThe US joint venture will be responsible for US data protection, algorithm security, content moderation, and software assurance,\u201d Chew said in the memo.<\/p>\n
\u201cIt will also have the exclusive right and authority to provide assurances that content, software, and data for American users is secure.\u201d<\/p>\n
Chew told staff that half the US venture will be held by a consortium of new investors including Oracle, Silver Lake and MGX \u2014 which will have 15 percent each.<\/p>\n
Affiliates of existing ByteDance investors will own a touch over 30 percent of the venture, with Bytedance retaining just shy of 20 percent, the maximum ownership allowed for a Chinese company under the terms of the law.<\/p>\n
TikTok Global\u2019s US entities will manage global product interoperability, and certain commercial activities, including e-commerce, advertising, and marketing, according to the memo.<\/p>\n
Chew noted that there is more work to be done ahead of the January 22 closing date for the deal.<\/p>\n
The new set-up is in response to a law passed under Trump\u2019s predecessor, Joe Biden, that forced ByteDance to sell TikTok\u2019s US operations or face a ban in its biggest market.<\/p>\n
US policymakers, including Trump in his first presidency, warned that China could use TikTok to mine data from Americans or exert influence through its state-of-the-art algorithm.<\/p>\n
Trump has delayed enforcement through successive executive orders, most recently extending the deadline into January.<\/p>\n
The deal largely confirms a September announcement by the White House that said a new venture had been agreed with China and would meet the requirements of the 2024 law.<\/p>\n
\u201cIf I could make it 100 percent MAGA I would, but it\u2019s not going to work out that way unfortunately,\u201d Trump told reporters after the TikTok announcement in September.<\/p>\n
Trump in September had specifically named Oracle boss Ellison, one of the world\u2019s richest men, as a major player in the arrangement.<\/p>\n
Ellison has returned to the spotlight through his dealings with Trump, who has brought his old friend into major AI partnerships with OpenAI.<\/p>\n
Ellison has also financed his son David\u2019s recent takeover of Paramount and is involved in his son\u2019s bidding war with Netflix to take over Warner Bros.<\/p>\n
Beijing\u2019s foreign ministry spokesman Guo Jiakun did not directly address reports of the deal, reiterating Friday that \u201cChina\u2019s position on the TikTok issue is consistent and clear\u201d.<\/p>\n
Bytedance did not immediately comment, but experts said it was a compromise that had averted the blow of losing access to the lucrative US market.<\/p>\n
\u201cKeeping the US operation live is itself a victory\u201d for Bytedance, Li Chengdong, founder of Chinese technology consultancy Dolphin, told AFP.<\/p>\n
Settling the issue allows Bytedance to focus on new ventures including artificial intelligence projects, and could help it move towards an initial public offering (IPO), Li said.<\/p>\n
Zhang Yi of technology research firm iiMedia said the US market was of \u201cparamount importance to TikTok\u201d but warned the deal did not guarantee smooth sailing going forward.<\/p>\n
\u201cThe US side could still leverage its regulatory power\u2026 to impose unfair demands on TikTok,\u201d Zhang said.<\/p>\n<\/p><\/div>\n
Rephrase in a different way as if you were a native American speaker as a content creation expert and do not talk about yourself or your experience in the text and do not show yourself as an artificial intelligence who wrote and fill the bullet point in the topic and speak the heart of the topic itself and dont take date of blog in ther first and dont take text like box of newsliter subscribe on post from content and romove all linke insert in content and and remove all affiliate disclosure phrases on content like this “This post may contain Amazon or other affiliate links that allow us to earn a small commission at no extra cost to you. Please see our Disclosure Policy for more info” and “#” put in its place bullet point, and romove name of the web site or his links we are take a content from our new creation<\/p>\n","protected":false},"excerpt":{"rendered":"
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