American investors and TikTok agree to open a new business in the U.S.

Because of concerns about national security, Oracle and Silver Lake are likely to play a big role as TikTok changes how things work in the U.S.

TikTok has made a big deal with American investors to start a new business in the U.S. that will run its operations there. This is to put an end to long-standing national security worries that lawmakers in Washington have raised.

According to people who know about the deal, ByteDance, the Chinese company that owns TikTok, will move the app's U.S. operations to a new American company that has well-known investors like Oracle and Silver Lake, a private equity firm. The deal is the most important thing that has happened so far to keep TikTok going in the US.

The goal is to keep TikTok going in the US and make it very hard for people from other countries to get private user data.

Silver Lake, which has been putting money into ByteDance for a long time, is likely to buy a large stake, along with other American investors. ByteDance will probably keep a small stake, but it won't have much say in how the US company runs or what it does.

Fixing Problems in Washington

U.S. officials have said many times that TikTok's ownership by a Chinese company could be a threat to national security because they are worried that the Chinese government could get user data. TikTok has always denied those claims.

The new structure is meant to follow U.S. rules by making sure that U.S.-based companies handle and store American user data in the U.S. The Committee on Foreign Investment in the United States (CFIUS) is likely to look at the purchase because it involves foreign ownership of U.S. companies.

If the deal goes through, it could end years of uncertainty for thousands of American marketers and content creators who depend on TikTok for their jobs, as well as the platform's estimated 170 million US users.

What this means for businesses and people who use it

TikTok says that users shouldn't have any problems and that the app will keep working like it always does. Corporate leaders say that the new structure will help regulators understand things better and make things more stable in the long run. But advertisers and creators shouldn't expect to see a lot of changes in the near future.

Experts say that the deal is a compromise that lets TikTok stay in the US market while giving Washington more peace of mind about data security and corporate oversight.

TikTok Gets Something New

The deal had to happen because of the government, and it's one of the biggest changes to a big social media company ever. It also shows how national governments and multinational internet companies are getting more and more angry with each other over things like data security, foreign ownership, and digital power.

Even though regulators still need to give their final approval, the deal could set a standard for how foreign-owned tech companies deal with more scrutiny from the US government.

About Author

RILEY CARTER

Riley Carter writes about business, finance, and the economy, bringing readers insights into market movements, industry shifts, and corporate leadership.

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