We have more details on the TikTok deal, including some ownership statistics
TikTok has signed a deal to spin off its American business, according to reporting from Associated Press and others. This should keep the popular social media app available in the US for good, capping off years of drama.
We now have some new data as to the specifics of the deal. Nearly 50 percent of assets will be split between three companies. Oracle, Silver Lake and MGX will each control around 15 percent of the newly-formed entity. It's worth noting that MGX isn't an American company at all, but rather Abu Dhabi’s state-owned investment firm.
The rest will remain in the hands of affiliates of TikTok's parent company, ByteDance. That company will also take a direct ownership stake of around 20 percent. US platform operations will be managed by a seven-member board of directors. The majority of this board will be Americans.
US data will be stored under a system operated by Oracle. That company is run by Larry Ellison, a long-time ally of President Trump who once brainstormed ideas on how to overturn the 2020 presidential election. Oracle has been trying to get its mitts on TikTok since at least 2020. As for Silver Lake, it has deep ties to Trump allies like Michael Dell and his son-in-law Jared Kushner.
The deal is expected to close on January 22, according to an internal memo shared by TikTok CEO Shou Chew. "With these agreements in place, our focus must stay where it’s always been — firmly on delivering for our users, creators, businesses and the global TikTok community," he wrote to employees.
If a deal is truly finalized by next month, it will come just over a year after Trump's first executive order to delay a law that required a sale of the app to prevent a ban. He has signed several other extensions since.This article originally appeared on Engadget at https://www.engadget.com/social-media/we-have-more-details-on-the-tiktok-deal-including-some-ownership-statistics-163003507.html?src=rss