TikTok has reached a landmark agreement with several United States-based investment firms, effectively shifting the majority of its ownership to American entities. This strategic move comes just days before a critical deadline that could have seen the popular social media platform banned in the U.S.
Ownership Structure and Key Stakeholders
Under the new terms, ByteDance will retain a 20% stake in the company. The remaining 80% is now distributed among a group of investors led by Oracle, Silver Lake, and MGX, with each of these three primary firms securing a 15% share. This divestiture marks a significant turning point in the platform's relationship with the U.S. market.
Enhanced Data Privacy and Security
A central pillar of this deal is the protection of user information. The new joint venture is designed to safeguard the data and algorithms of American users. Oracle will take a leading role in this effort, serving as the official cloud provider and managing content moderation. This restructure also encompasses other properties including CapCut and Lemon8, ensuring a unified approach to international content.
Leadership and Governance
The company's operations will be managed by a seven-member board of directors, primarily composed of Americans. Notable figures on the board include TikTok CEO Shou Zi Chew, Egon Durban of Silver Lake, Kenneth Glueck of Oracle, and David Scott of MGX. This leadership team will oversee the platform's transition and ensure compliance with new safety standards.