A new U.S.-based joint venture would keep TikTok online while handing oversight of its algorithm and data security to some of America’s wealthiest investors.
TikTok and ByteDance, its Chinese parent company, have signed binding agreements to create a new joint venture that will reportedly be majority-owned by American investors.
The deal, expected to close on Jan. 22, would allow TikTok to continue operating in the U.S. under a law that would have banned the app on national security grounds unless China-based ByteDance divested its U.S. operations. It also hands some control over content moderation and the recommendation algorithm to one of the richest men in the world.
Numerous media outlets reported that the new venture would be called TikTok USDS Joint Venture LLC, citing a memo from TikTok CEO Shou Zi Chew to employees.
The three new managing investors include Oracle, the tech giant founded by Larry Ellison, who currently serves as the company’s executive chairman and chief technology officer.
