Overview
- U.S. and international investors will own 80.1% of TikTok USDS Joint Venture LLC, with ByteDance retaining a 19.9% stake.
- Oracle, Silver Lake and Abu Dhabi-based MGX each hold 15% and are designated as managing investors.
- The new entity is responsible for U.S. data protection, algorithm security and content moderation, with Oracle hosting U.S. user data and auditing compliance.
- A seven-member, majority-American board oversees the venture; Adam Presser is CEO and Will Farrell is chief security officer, and TikTok CEO Shou Chew holds a board seat.
- ByteDance will license the recommendation algorithm to the U.S. venture for retraining on U.S. data, and Axios reports a roughly $14 billion U.S. valuation as experts flag lingering security questions.