TikTok says it signed agreements to create new US joint venture

TIKTOK chief executive officer Shou Chew told employees that the social media app’s parent company, ByteDance, signed binding agreements to create a US joint venture majority-owned by American investors.

In an internal memo reviewed by Bloomberg, Chew said he was “pleased to share some great news” and said agreements with Oracle Corp, Silver Lake and MGX have been signed.

“Upon the closing, the US joint venture, built on the foundation of the current TikTok US Data Security (USDS) organisation, will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance,” Chew said in the memo.

Meanwhile, “TikTok global’s US entities will manage global product interoperability and certain commercial activities, including e-commerce, advertising, and marketing,” he wrote. BLOOMBERG