#ICYMI: TikTok's US operations now under Oracle-led investor group
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The majority of the new entity will be controlled by US firms.
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| File photo: TikTok logo |
American firms to have majority stake
A group of American investors has signed a deal to take over the US operations of TikTok.
According to a report by Buffalo Toronto Public Media, the investors include software giant Oracle, a company run by Trump ally Larry Ellison.
Under the terms of the sale, half of the new entity that will control the American version of TikTok will be owned by a consortium of investors, including Oracle, private equity firm Silver Lake, and United Arab Emirates state-backed investment firm MGX.
About a third of the operation, meanwhile, will be held by existing investors of ByteDance, the Chinese parent company of the video app. And around 20 percent will be kept by ByteDance.
Under the agreement, TikTok's US algorithm will be retrained with only Americans' data, while the investor group will set the content moderation rules.
The underlying algorithm will still be owned by Beijing-based ByteDance, with the blessing of American auditors, according to an internal TikTok memo reviewed by NPR and two sources familiar with the deal who were not authorized to speak publicly.
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