TikTok’s parent company, ByteDance, has signed binding agreements to establish a US joint venture majority-owned by American investors. TikTok is a popular social media platform known for short-form videos. ByteDance is a global technology company that develops and operates content platforms.
According to an internal memo reviewed by Bloomberg, TikTok chief executive Shou Chew informed employees of the agreement with Oracle, Silver Lake, and MGX. Chew stated he was “pleased to share some great news” regarding the partnerships.
The US joint venture will operate independently and will be built on the framework of TikTok’s existing US Data Security organisation. The new entity will oversee US data protection, algorithm security, content moderation, and software assurance. This restructuring aims to address concerns regarding data security and US user information.
TikTok Global’s US entities will manage global product interoperability and certain commercial activities. These commercial activities encompass areas such as e-commerce, advertising, and marketing. The move signifies a strategic realignment to ensure compliance and security for the platform’s operations in the United States.
