ByteDance sets up new company in the US to manage TikTok

On September 26, LatePost reported that ByteDance Group - TikTok's parent company, will establish a new company in the US to manage the short video app's operations in this market. Accordingly, the new business will be in charge of e-commerce, branding and connections with international branches.

TikTok app icon on phone screen. (Photo: THX/TTXVN)

Oracle, Silver Lake and Abu Dhabi-based MGX will become the majority investors, holding about 45% of TikTok USA, according to people familiar with the matter. ByteDance will directly hold 19.9%, while existing investors and some new shareholders, including Susquehanna, General Atlantic and Sequoia, will hold the remaining 35%.

The deal does not involve direct US government participation. TikTok’s US board will be majority-controlled by Americans, with Oracle overseeing data security.

President Donald Trump signed an executive order supporting the deal, after the US Congress passed a law forcing ByteDance to divest or face a ban on TikTok in the US. He said businessmen Rupert Murdoch, Lachlan Murdoch, Larry Ellison and Michael Dell may also be involved in the joint venture.

President Trump has repeatedly emphasized TikTok’s importance in last year’s election, while affirming his desire to maintain the platform for its 170 million American users. Meanwhile, analysts say ByteDance’s agreement to set up a subsidiary in the US reflects its efforts to maintain stable trade relations with Washington.

VNA

Source: https://nhandan.vn/bytedance-lap-cong-ty-moi-tai-my-de-quan-ly-tiktok-post910774.html