Private equity firms, tech giants and existing ByteDance backers make up the investor group behind the newly created US venture.<\/b>
\nTikTok and its Chinese parent ByteDance announced on Thursday the official creation of a new US venture \u2013 TikTok USDS Joint Venture \u2013 to operate the short video app used by 200 million Americans.
The deal, the culmination of years of legal and political uncertainty, is part of the effort to comply with a 2024 US law that aimed to push ByteDance to divest TikTok to address national security concerns over the app\u2019s links to Beijing. Without a divestment, the app would have faced a nationwide ban.
The new arrangement sees ByteDance retaining 19.9 per cent of the venture, with non-Chinese investors owning about 80 per cent.
The new venture will license ByteDance\u2019s powerful recommendation algorithm \u2013 described as the secret sauce to the app\u2019s success \u2013 and moderate content on the app.Who are the top investors?
The three \u201cmanaging investors\u201d are Silver Lake, Oracle and Abu Dhabi\u2019s MGX. Each will hold 15 per cent of the hugely successful app.
Silver Lake is a private equity firm headquartered in Menlo Park, California, and New York City. Co-CEO Egon Durban will serve as one of the seven members of the venture\u2019s majority-American board of directors.<\/p>\n