TikTok's parent company signs deal to create new US joint venture
發佈日期: 2025-12-19 20:22
TVB News
A deal about TikTok's future in the US has been struck, allowing it to continue operating in America.
TikTok's parent company ByteDance has signed a binding agreement with a consortium of American and global investors to form a new TikTok joint venture to run the app's US operations.
The milestone will end years of uncertainty for the popular short-video sharing platform to avert a US government ban. But Beijing has yet to say whether it will approve it or not.
TikTok CEO Shou Zi Chew reportedly told employees Thursday that the joint venture will "operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance."
The new spin-off, TikTok USDS Joint Venture LLC, will be 50 percent held by investors comprised of Oracle, Silver Lake and MGX.
Just over 30 percent of the venture will be held by affiliates of existing investors of the Beijing-based ByteDance, and the remaining 19.9 percent will be retained by ByteDance, according to Chew's memo.
The deal will see a seven-member board of directors, mostly Americans, to protect US data and national security.
In addition, TikTok's American user data will be stored in the local system operated by Oracle while the algorithm behind its video feed will be retrained in the United States in a bid to "ensure the content feed is free outside manipulation."
The agreement is due to close by January 22nd next year.
In China, a foreign ministry spokesman gave a non-committal answer when asked about the joint venture deal on Thursday.
He suggested reporters refer to relevant authorities and reiterated China's position on TikTok is "clear and consistent."
Earlier, authorities indicated they welcome enterprises to conduct negotiations and arrive at an interest-balanced solution in accordance with the Chinese law and regulations.
TikTok's fate was in limbo in 2020 when US President Donald Trump tried to ban the app in an unsuccessful attempt.
Under the Biden administration, the US Congress passed a bill forcing the company to divest its US operations or face removal from app stores over alleged national security concerns.
Since Trump returned to the White House, he has repeatedly extended the deadline of its enforcement to keep the app alive in America.
