Tiktok News: TikTok has just announced that it will be selling its US operations to a group of AMerican companies that includes very prominent names like, Oracle, Silver, Lake and MGX. This agreement might work as a loophole and will let TikTok continue its presence in the United States, and saving it from its potential ban that the country had imposed.

According to an internal memo accessed by The Associated Press, ByteDance has signed a binding agreement for TikTok’s US operations, with the deal expected to close on January 22, 2025. CEO Shou Zi Chew informed employees that the new entity will follow a revised ownership structure designed to meet US regulatory requirements.

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Under the agreement, 50 percent ownership will be held by a consortium that includes Oracle, Silver Lake, and MGX, with each firm owning a 15 percent stake. Another 30.1 percent will be owned by affiliates of existing ByteDance investors. The remaining 19.9 percent stake will stay with ByteDance, the China based parent company.

Data Security And Governance Measures

To address long standing national security concerns, the US venture will operate under a seven member board of directors, with a majority of American members overseeing governance and strategic decisions.

Several safeguards have been built into the structure. All US user data will be stored on domestic servers managed by Oracle. TikTok’s recommendation algorithm will be retrained exclusively using US user data, reducing the risk of external influence. Content moderation and policy enforcement for the US market will be handled independently by the American entity.

Legal Backdrop To The TikTok Deal

The agreement brings an end to years of regulatory and legal uncertainty. A law signed by President Joe Biden had temporarily shut down TikTok at the start of 2025. However, an executive order issued by President Donald Trump on his first day back in office allowed the platform to continue operating until the sale process was completed.

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What This Means For India

The US arrangement has little bearing on TikTok’s status in India. Before the ban, India was TikTok’s largest market with more than 200 million users. In June 2020, the Indian government banned TikTok along with 58 other apps, citing concerns over data storage practices and national security risks.

Authorities stated that user data was allegedly being transmitted to servers outside India, posing a threat to the country’s security and sovereignty. Given these concerns and the lack of any official announcement from the company, TikTok’s return to India remains unlikely for now.