TikTok Ownership Transfer to US-Controlled Entity with Oracle as Security Partner
ByteDance has agreed to transfer majority ownership of TikTok to a group of US-based investors and allies, including Oracle, Silver Lake, and MGX, following prolonged negotiations and legal pressure from US lawmakers. Under the terms of the deal, US entities will control 80.1% of TikTok, while ByteDance retains a 19.9% stake and one board seat. Oracle will serve as a "trusted security partner," responsible for safeguarding US user data and ensuring that China-based ByteDance has no access to sensitive information or influence over the algorithm for US users.
The agreement establishes TikTok's US operations as an independent entity with authority over data protection, algorithm security, content moderation, and software assurance. All US data will be stored in a secure cloud environment managed by Oracle. ByteDance will continue to manage global product interoperability and certain commercial activities, but the new structure is designed to address national security concerns about potential Chinese government access to US user data and content manipulation.
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