TikTok Secures its American Future: Joint Venture with Oracle and Silver Lake

TikTok has formed a new U.S. venture with major investors, including Oracle and Silver Lake, preventing a potential U.S. ban. This move ensures data security, algorithm independence from ByteDance, and protects its 200 million American users. Adam Presser will lead the entity as CEO, with Oracle managing data systems.

TikTok has finalized its plan to establish a new American entity, securing its presence in the U.S. market and avoiding the threat of a ban that has hovered for years. The popular video-sharing platform has entered into agreements with investors like Oracle, Silver Lake, and MGX to create TikTok US.

This new venture will operate under guidelines designed to protect national security, including robust data protection measures and content moderation, addressing previous concerns raised by U.S. lawmakers. As part of the deal, Oracle will ensure local data storage and manage algorithm updates, addressing key security issues.

The move concludes a period of uncertainty for TikTok, which is used by over 200 million Americans. The deal received praise from former President Donald Trump and ends the need for TikTok to divest from ByteDance, although ByteDance will retain a stake. Adam Presser will serve as CEO, with decisions guided by a predominantly American board.

(With inputs from agencies.)