TikTok Signs Deal To Form New U.S. Unit With Investors

The move comes after threats to ban the app due to conspiracies that China was using it to gather information and data.

TikTok has signed a deal to form a new U.S. unit with investors.

The agreement was made with Oracle, Silver Lake, and MGX. It forms a joint venture that allows popular social video platform to continue U.S. operations.

Each of the investors will hold a 15% share while 19.9% of the app will be held by ByteDance. Another 30.1% will be held by existing investors.

The U.S. venture will have a new, seven-member majority-American board of directors. It will also be subject to terms that “protect Americans’ data and U.S. national security.”

The move comes after an extensive plan to ban TikTok in the U.S. due to conspiracies that China was using it to gather information and data.