ByteDance, the company that owns TikTok, decided to cede majority control of its US operations to an American consortium, thus ensuring its continued operation in the country and ending the legal and regulatory conflicts that have dragged on for years.

The new company will be called TikTok USDS, will be headquartered in the United States, and will be managed by a group of local companies including Oracle, MGX, Silver Lake, and a company linked to Michael Dell.

The agreement by which ByteDance sold the majority of its operations, retaining only 19.9 %, establishes this new ownership structure, although Shou Zi Chew will remain the global CEO.

The board of directors will be dominated by Americans. Adam Presser will assume the role of CEO of the US subsidiary, and Will Farrell will be responsible for security.

To mitigate national security risks, Oracle will host user data and the recommendation algorithm on its own infrastructure within the US.

M.Pino

Source: finanzasdigital

(Reference image source: Solen Feyissa on Unsplash)

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