TikTok's US Entity Deal Provides Relief Amidst Ongoing Controversy
In a move that signals a significant shift in its American presence, TikTok has finalized a deal to establish a new US entity. The news comes five years after former President Donald Trump first threatened to ban the popular social media app, and it effectively sidesteps the ban that had been looming over the platform.
The new venture will be majority-owned by a group of investors, including Larry Ellison's Oracle, private-equity firm Silver Lake, and Abu Dhabi-based MGX. ByteDance, TikTok's Chinese parent company, will retain ownership of 19.9%, while the majority stake will be held by US-based investors.
As part of the agreement, Adam Presser, a veteran TikTok executive, has been appointed as CEO of the new entity. The board of directors, comprising seven members, including cybersecurity and national security experts, will oversee the company's operations in the US.
Under the terms of the deal, the new entity will operate under defined safeguards to protect national security, which include comprehensive data protections, algorithm security, content moderation, and software assurances for US users. The platform has also promised to retrain its content recommendation algorithm using US user data to prevent outside manipulation.
The agreement marks a significant victory for TikTok, which had faced intense scrutiny from US lawmakers and officials over concerns about user data security and the potential for the Chinese government to use the platform to harvest data from American users. The deal is also seen as a major relief for influencers and creators in the US who rely heavily on the app.
The White House has confirmed that China's government has signed off on the deal, although details of this agreement remain unclear. Former President Trump has expressed his satisfaction with the outcome, praising Chinese President Xi Jinping for "working with us" to make the deal happen.
As TikTok navigates its new relationship with US regulators, the platform must address ongoing concerns about data security and user protection. The success of this venture will depend on its ability to balance the needs of American users with those of its parent company in China.
In a move that signals a significant shift in its American presence, TikTok has finalized a deal to establish a new US entity. The news comes five years after former President Donald Trump first threatened to ban the popular social media app, and it effectively sidesteps the ban that had been looming over the platform.
The new venture will be majority-owned by a group of investors, including Larry Ellison's Oracle, private-equity firm Silver Lake, and Abu Dhabi-based MGX. ByteDance, TikTok's Chinese parent company, will retain ownership of 19.9%, while the majority stake will be held by US-based investors.
As part of the agreement, Adam Presser, a veteran TikTok executive, has been appointed as CEO of the new entity. The board of directors, comprising seven members, including cybersecurity and national security experts, will oversee the company's operations in the US.
Under the terms of the deal, the new entity will operate under defined safeguards to protect national security, which include comprehensive data protections, algorithm security, content moderation, and software assurances for US users. The platform has also promised to retrain its content recommendation algorithm using US user data to prevent outside manipulation.
The agreement marks a significant victory for TikTok, which had faced intense scrutiny from US lawmakers and officials over concerns about user data security and the potential for the Chinese government to use the platform to harvest data from American users. The deal is also seen as a major relief for influencers and creators in the US who rely heavily on the app.
The White House has confirmed that China's government has signed off on the deal, although details of this agreement remain unclear. Former President Trump has expressed his satisfaction with the outcome, praising Chinese President Xi Jinping for "working with us" to make the deal happen.
As TikTok navigates its new relationship with US regulators, the platform must address ongoing concerns about data security and user protection. The success of this venture will depend on its ability to balance the needs of American users with those of its parent company in China.
. It's crazy how much drama they've been through, and it's good that they're able to move forward without getting banned 
. I think this new entity is a great idea, especially with Oracle and Silver Lake on board - they must know what they're doing 
. And Adam Presser as CEO? That's a solid pick, he's been with the company for ages 
. The safeguards to protect national security are also super important - I'm glad they're taking this seriously 
. It'll be interesting to see how it all plays out, especially with the influencers and creators in the US - their livelihoods depend on it 
.
I mean, who doesn't love a good underdog story? But let's not get ahead of ourselves here... this deal comes with some major caveats for me. I'm still worried about that 19.9% stake being held by ByteDance – it's like they're waving a big red flag in the air saying 'Hey, we've got an open door to China'. How are they gonna keep their promises about data security and algorithm manipulation? And what exactly do these new safeguards look like in practice? We need more transparency than just fancy words on paper... 
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. This deal is a big relief for now, but I'm not convinced that it solves all the problems 
.
, but also kinda worrying 
, but how's this gonna impact content moderation? And what about those algorithm security measures 
. It's a big responsibility for them to balance their parent company in China with what's best for American users 
, but I'm still waiting to see how this plays out in reality 
. Let's keep an eye on how TikTok handles user data and content moderation – we need transparency and accountability 
!
just found out tiktok's finally got a new us entity deal 
but is it too little too late? 
i mean, five years after trump was all like "ban tiktok" and now they're basically saying thanks for stopping by, china... 
still gotta worry about user data security tho 
especially since byte dance gets 19.9% ownership 
. The fact that ByteDance isn't 100% in charge shows they're willing to compromise, which is good for users like me who don't want their data being used for nefarious purposes 
. Now we just gotta wait and see how this all plays out, especially with regards to data security 
. I'm curious to see how this will affect US creators who rely on the platform - fingers crossed they get a fair deal 
I'm like super relieved that TikTok finally got a deal done! Five years is way too long for them to be stuck in uncertainty, you know? 
It's great to see them get the green light and move forward with their new US entity. I mean, it's not just about the platform itself, but also all the creators who rely on TikTok for their livelihoods 
And hey, it's not all about TikTok, either - it's also about the investors who are putting their money on the platform 
And I'm loving the fact that Adam Presser is at the helm as CEO - he seems like an awesome guy to have leading the charge 
what's up with the chinese government tho? is it legit that china signed off on this deal or is there more to it than we know 
tiktok has been living under a cloud for years due to all these conspiracy theories surrounding it's chinese ownership, and now they've got a new US entity that's basically a silver bullet 
to quiet all the haters. but seriously, who's really in charge here? is it the us-based investors or byte dance back in china? 
meanwhile, the white house is just along for the ride, no real power move here