US Owners of TikTok to Share Limited Control Over Key Business Parts

TikTok is undergoing significant changes in its US operations. A new joint-venture agreement involves key players in business and investment. This partnership includes Oracle, the Abu Dhabi investment firm MGX, and private-equity firm Silver Lake as managing investors.

Joint-Venture Agreement Details

The agreement allows these firms to have a limited role in TikTok’s US operations, with specific focus areas. TikTok’s CEO, Shou Chew, has clarified that while these investors may participate in profits, they will not control essential business functions.

Roles and Responsibilities

• Oracle, Silver Lake, and MGX will handle national security issues.
• ByteDance will retain control over advertising and e-commerce operations.
• The new venture will manage US data protection, algorithm security, and content moderation.

This setup suggests that TikTok’s operational framework will remain predominantly influenced by ByteDance, especially in critical areas like advertising and marketing strategies. Chew conveyed to employees that advertisers will engage with global audiences without disruptions.

Valuation and Stake Distribution

The deal is projected to close by late January, with a valuation estimated at $14 billion. This figure is notably lower than the $50 billion estimate from Morningstar analysts earlier this year. The ownership structure will see:

Concerns Among TikTok Employees

Despite the new arrangement, employees at TikTok express uncertainty regarding their immediate future. Many are curious about potential changes in leadership and organizational structure. A TikTok staff member noted there’s still ambiguity about how this deal will directly affect their roles.

As the agreement progresses, the focus remains on questions of control and management. The evolving landscape of TikTok in the US highlights ongoing challenges and strategic directions for the platform.