ByteDance's Strategic Deal: TikTok's US Control Revolutionizes Tech Landscape

ByteDance, the Chinese owner of TikTok, has signed agreements to transfer control of TikTok's US operations to investors, including Oracle, to evade a US ban. This move ends a long period of uncertainty, as the new joint venture with US stakeholders oversees US data protection and algorithm security.

On Thursday, ByteDance, the Chinese owner of TikTok, finalized significant agreements to cede control of its US operations to a consortium of investors, including Oracle, in a decisive step to avert a potential US ban.

This landmark deal, which follows extensive negotiations since a 2020 dispute under President Trump, sets up a joint venture where Oracle and other American investors will control an 80.1% stake, with ByteDance retaining 19.9%. The move addresses US national security concerns by placing data protection and algorithm oversight in the hands of US interests.

Despite this milestone, questions remain about the extent of ByteDance's ongoing influence. The White House, TikTok, and involved parties have yet to disclose specific details, highlighting continued scrutiny over the handling of sensitive user data and the operational framework of TikTok's US presence.

(With inputs from agencies.)