Bloomberg reported that ByteDance, the owner of TikTok, has come to an agreement to give a group of investors 50 per cent ownership of a new venture controlling the short video app’s US operations. These investors are led by Oracle, Silver Lake Management and Abu Dhabi-based MGX.
The deal avoids a pending domestic ban of the app if ownership wasn’t transferred to US investors and comes more than five years after US President Donald Trump unsuccessfully attempted to shut down the app, citing user privacy and national security concerns.
The three managing investors will each hold a 15 per cent interest, the news agency wrote. Existing ByteDance investors will have a 30.1 per cent stake, while ByteDance’s holdings will drop to 19.9 per cent.
The new entity will governed by a new, seven-member board, which will include TikTok CEO Shou Chew. It will moderate content on the app and protect user data.
Financial details of the deal weren’t disclosed.
Adam Presser, previously TikTok’s head of operations, trust and safety, takes over as CEO of the venture, Bloomberg stated.
Source: Mobile World Live
Image Credit: TikTok
