**The US TikTok Deal: What You Need to Know**
Hey guys, welcome back to our channel! If you’ve been keeping up with the latest tech news, you’re probably aware of the drama surrounding TikTok in the US. The Chinese-owned app has been under fire for years over concerns about user data being accessed by the Chinese authorities. But on January 22, TikTok made a major announcement that’s got everyone talking: the creation of the TikTok USDS Joint Venture LLC.
So, what exactly is going on here? Let’s break it down.
**Who’s Behind the Wheel?**
So, here’s the thing: ByteDance, the parent company of TikTok, will still own a significant 20% stake in the US operation. But the other 80% is being held by a group of non-Chinese investors, including tech giants Oracle, private equity firm Silver Lake, and investment firm MGX. Each of these groups will hold a 15% stake, or 45% collectively. It’s worth noting that Oracle has a bit of experience with TikTok already – they’ve been providing cloud services for the app and managing user data in the US.
**So, What Does This Mean for Us Users?**
To be honest, it’s still a bit unclear. Earlier reports suggested that US users might have to switch to a new app, but more recent reports are saying that’s not the case – so you won’t have to download a new app just yet. But we’re still waiting for word on how this deal will affect the day-to-day experience for the 200 million American TikTok users out there.
**A Brief History of the TikTok Drama**
If you’re new to the world of tech news, here’s a quick rundown of how we got to this point. So, back in August 2020, President Trump signed an executive order to ban transactions with ByteDance. Then, just a month later, his administration tried to force a sale of TikTok’s US operations to a US-based company.
**The Bidders**
There were a few groups vying for a piece of TikTok, including The People’s Bid for TikTok, a consortium led by Project Liberty founder Frank McCourt. The group had some serious backing from Guggenheim Securities and law firm Kirkland & Ellis. And yes, you might recognize some of the names involved – think Reddit co-founder Alexis Ohanian and TV personality Kevin O’Leary.
**The Deal in a Nutshell**
So, what exactly is happening? The new “TikTok USDS Joint Venture LLC” is in charge of overseeing the app’s operations, including data security, algorithm security, content moderation, and software assurance. Oracle is basically the trusted security partner, and they’ll be responsible for ensuring compliance with all the necessary national security terms. And yes, they already do some work with TikTok, handling data management and cloud services in the US.
**What’s Next?**
Honestly, it’s still a bit unclear what this all means for US users. We’re in a wait-and-see mode to see just how this deal shakes things up – or not. For now, it seems like the drama surrounding TikTok’s US operations has been somewhat resolved, but we’ll just have to keep an eye on how this plays out for the future of TikTok in the US.
**Want the Full Story?**
If you’re curious about the full timeline of events leading up to this deal, check out the original article on TechCrunch for the inside scoop.
