TikTok has agreed to a joint venture with American firms after negotiations threatened by a US ban. The move addresses concerns about alleged data tracking.
Social network TikTok announced Friday night that it had signed a joint venture agreement with three investors that will allow it to maintain its operations in the United States and avoid the threat of a ban in the country for the platform’s Chinese ownership. TASR writes about it according to the AFP agency, which refers to American media.
- TikTok signed an agreement with investors for American operations.
- The company created a new entity with American investors.
- ByteDance agrees to sell a stake in the American branch of TikTok.
According to an internal report cited by Bloomberg and Axios, TikTok CEO Chou Shouzi told employees that TikTok and its Chinese owner ByteDance have agreed to form a new entity, with US companies Oracle, Silver Lake and Abu Dhabi-based MGX as its main investors.
TikTok and security concerns
The United States has long sought to wrest control of TikTok’s operations in the US from Chinese parent company ByteDance for reasons of national security. American politicians have repeatedly warned in the past that China could use TikTok to collect data on Americans or influence what they see on social media.
The joint venture deal largely confirms a White House announcement in September that said the new venture would meet the requirements of the 2024 law. The US Congress passed a law last year that forced ByteDance to sell TikTok’s US arm if ByteDance remained a majority owner.
