"The US TikTok saga began when Trump, during his first term, vowed to ban the app. It ramped up in 2024 when then-President Joe Biden signed a law requiring that the US version of the app be spun off from its parent company, ByteDance, or be banned in the United States. During his second term, Trump has repeatedly delayed enforcement of the law as he sought a deal to transfer control of the app's US operations to American ownership."
"The agreement transferred control of TikTok's US user data and most of its US operations to a new joint venture, 50% of which will be owned by a consortium of investors comprised of tech company Oracle, private equity firm Silver Lake and Emirati-backed investment firm MGX. Just over 30% of the joint venture will be held by affiliates of certain existing investors in ByteDance, and 19.9% will be retained by ByteDance, according to a memo TikTok CEO Shou Chew sent to employees last month."
A majority American-owned joint venture has formally acquired TikTok's U.S. assets and announced its leadership team ahead of the January 23 deadline. The transaction transfers control of U.S. user data and most U.S. operations to the new entity and establishes safeguards for national security through comprehensive data protections, algorithm security, content moderation, and software assurances. The joint venture is 50% owned by a consortium including Oracle, Silver Lake and Emirati-backed MGX; just over 30% is held by affiliates of certain existing ByteDance investors; and 19.9% remains with ByteDance. The move resolves a yearslong effort driven by a 2024 law requiring U.S. separation or ban and by prior enforcement delays. TikTok has about 170 million American users who rely on the app for entertainment, news and livelihoods.
Read at www.mercurynews.com
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