TikTok has reached a deal that allows the app to remain online and continue operating. The company has signed agreements with a group of investors to spin off its U.S. operations into a new majority-owned joint venture, allowing the app to continue operating in the U.S. The investor group includes Oracle, private equity firm Silver Lake, and investment company MGX.
According to reporting from multiple outlets, including CNN and New York Times, the joint venture will be responsible for user data protection, content systems, content moderation, algorithm security, and software assurance for American users.
The agreement gives control of Bytedance’s TikTok U.S. operations to a newly formed entity governed by a board with a majority from the investor group. TikTok’s parent company, ByteDance, will retain a minority ownership stake.
TikTok currently has an estimated 170 million users in the U.S. The company has stated that the joint venture will have exclusive authority over data and content systems related to American users.
Industry analysts note that TikTok’s recommendation algorithm for U.S. users will be retrained using U.S. data, which may result in changes to how content appears within the app.
TikTok will continue operating and has not announced any immediate product updates or changes to features, creator programs, or monetization tools.
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