Washington (Web Desk): Good news for TikTok users in the U.S. as the company has reached a new agreement with American and global investors, which has helped avert the threat of the app being banned.
TikTok’s parent company, ByteDance, has signed binding agreements to establish a new joint venture for its U.S. operations. According to TikTok's CEO, Shou Zi Chew, this agreement will allow over 170 million American users to continue using the app, and the deal is expected to be finalized by January 22.
Under the agreement, U.S. companies Oracle and Silver Lake, along with Abu Dhabi’s investment firm MGX, will collectively hold a 45% stake, while ByteDance will retain 19.9%. The new joint venture will have control over U.S. data, algorithms, and content monitoring, with Oracle taking responsibility for safeguarding American users' data.
According to TikTok, more than seven million small businesses in the U.S. use the platform to promote their products and services, and the new deal will provide them with relief as well.