TikTok Agrees to U.S. Spin-Off Amid Privacy Concerns

TikTok has signed a deal to spin off its U.S. operations, marking a significant response to ongoing privacy and national security concerns. According to Engadget, nearly 50 percent of the assets will be divided among Oracle, Silver Lake, and Abu Dhabi-based MGX, with each controlling around 15 percent of the new entity, TikTok USDS Joint Venture LLC.

ByteDance, TikTok's parent company, will retain a direct ownership stake of about 20 percent. The deal also stipulates that U.S. data will be stored on a system operated by Oracle, which is managed by Larry Ellison, a known ally of former President Trump.

The agreement is expected to close on January 22, according to Entrepreneur, and it aims to enhance data protection, algorithm security, and content moderation for American users, addressing fears of outside manipulation.

This move concludes several years of intense scrutiny and legal battles over TikTok's Chinese ownership, which began when former President Trump demanded that ByteDance sell the app due to national security risks.