"TikTok has signed a deal to spin-off its U.S. operations to a group controlled by mostly American investors, including software giant Oracle, a company run by Trump ally Larry Ellison. The now-inked agreement is set to close on Jan. 22, according to a memo TikTok CEO Shou Chew sent to employees on Thursday that was confirmed by NPR. TikTok's hyper-engaging algorithm and the massive amount of data that app has collected on millions of Americans is set to be overseen by the new U.S. entity."
"The deal caps more than five years of mounting pressure from Washington, where bipartisan concerns about TikTok's ties to China prompted Congress to pass a law in 2024 that would have banned the app unless it was sold. The law was upheld by the Supreme Court in January. For months, TikTok was technically operating in violation of federal law, but Trump issued a flurry of executive actions to delay enforcement of the law that would have banned the popular video app."
TikTok will spin off its U.S. operations to a new entity expected to close on Jan. 22. The new U.S. entity will oversee the American version and the extensive data collected on millions of Americans, while the algorithm will remain owned and updated by Beijing-based ByteDance with oversight from American auditors. A consortium including Oracle, Silver Lake and UAE firm MGX will control 45% of the U.S. entity, existing ByteDance investors will hold about a third, and ByteDance will retain roughly 20%. A seven-member board, mostly American, will oversee operations. Congress passed a 2024 law to force a sale, upheld by the Supreme Court.
Read at www.npr.org
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