ByteDance, the parent company of TikTok, is making big moves in the U.S. They’ve signed agreements to create a joint venture that gives American investors control over TikTok’s operations in the U.S. This deal comes as a response to ongoing national security concerns regarding data privacy and ownership.
This joint venture is a significant development for the app, which boasts over 170 million users in the U.S. In 2020, former President Trump attempted to ban the app due to fears about data security and its Chinese roots. Although those efforts stalled, the recent deal seems to offer a path forward.
The new company will be valued at around $14 billion, with major investors including Oracle and Silver Lake. Together, these investors will own 80.1% of the new venture, leaving ByteDance with a smaller 19.9% stake. This shift aims to meet legal requirements from a 2024 law concerning the ownership of apps like TikTok. Oracle has been designated as the trusted security partner, tasked with safeguarding U.S. user data in a secure cloud environment.
Despite these developments, questions remain about ByteDance’s ongoing influence in the joint venture. TikTok’s CEO, Shou Zi Chew, addressed employees, stating that the new entity will operate independently, particularly concerning data protection and content moderation. However, reports from Chinese media suggest that ByteDance may still maintain a significant role in the operations.
The deal is expected to close on January 22, potentially ending years of scrutiny over ByteDance’s ownership. However, it has sparked debates in Washington. Representative John Moolenaar expressed concerns about possible backdoor deals that could favor billionaires. This sentiment echoes among critics like Senator Elizabeth Warren, who questions the motivations behind the venture and emphasizes the need for transparency.
In recent years, other tech companies have faced similar issues over foreign ownership and data privacy. For example, India banned TikTok in 2020 amid border tensions with China, highlighting global concerns about data security. A 2022 survey found that about 69% of Americans were worried about how foreign apps, particularly from China, handle their data.
As social media platforms continue to evolve, these conversations about ownership, privacy, and security won’t be going away anytime soon. The ultimate success of this joint venture will depend not just on business strategies, but also on public trust and regulatory decisions moving forward.
For more detailed insights, you can check the [Reuters report](https://www.reuters.com) on this evolving story.
Source link
NRLPA:OMA,BACT,BIZ,BLR,CMPNY,DEAL1,DLI,DVST,ENT,GEN,LIF,NEWS1,SMED,SOCI,SOFAPP,SOFW,SWIT,TECH,TMT,WWW,DEST:OUSBSM,MTPIX,PXP,SECUR,CWP,EUROP,PRIVT,PUBL,SOFENT,SOFW1,GB,AMERS,US,CARIBN,KY,NAMER,LATAM,DEST:OUSTPM,DEST:OCATPM,PACKAGE:US-TOP-NEWS,DEST:OCABSM,DEST:SEABS,LEGAL,REUTERS-LEGAL,DEST:LITA,DEST:OMA,DEST:OUSTCM,RULES:TRUMP,TOPNWS,POL,POTUS,TOPCMB,WASH,EASIA,ASXPAC,EMRG,CN,ASIA,BCST,HARW,HARW1,NEWPUB,TVBCST,CCOS,CMPELC,CYCS,MDIA,PUB,READ,TEEQ,PVE,BISV,FIN,FINS,INVBIS,INVM,DEST:CSA,DEST:LBY,DEST:REULB,DEST:ABX,DEST:G,DEST:RAST,DEST:M,DEST:PGE,DEST:Z,DEST:RNP,DEST:E,DEST:ABN,DEST:AFA,DEST:BNX,DEST:PSC,DEST:U,DEST:DNP,DEST:FUN,DEST:UCDPTEST,DEST:RWSA,DEST:GNS,DEST:RWS,DEST:D,DEST:RBN
