TikTok Finalizes Agreement to Create Entity in the U.S. and Avoids Ban
TL;DR
The platform TikTok announced the completion of an agreement to establish a new entity in the United States, thereby avoiding a potential ban. The announcement was made on Thursday, marking the end of a lengthy legal battle.
TikTok Establishes New Entity in the U.S.
The platform TikTok announced the completion of an agreement to create a new entity in the United States, thus avoiding a potential ban. The news was released on Thursday and marks the end of a long legal battle.
The Structure of the New Venture
The agreement, carried out by ByteDance, the Chinese owner of TikTok, results in the formation of a predominantly American joint venture. This new company includes major investors such as Oracle, led by Larry Ellison, private equity group Silver Lake, and Abu Dhabi's MGX.
Shareholding Participation
The new entity will be composed of 80.1% American participation, while ByteDance will retain 19.9% of the shares. This measure aims to address authorities' concerns about the data security of American users.
Implications for the Market and Users
With the creation of this new entity, TikTok hopes to secure its presence in the American market and the continuity of its operations. The decision is a significant step in maintaining access for over 100 million users in the United States.
Future Prospects
The agreement indicates a growing trend of international companies adjusting their operations in accordance with local requirements. The establishment of this new entity may serve as a model for other platforms facing similar challenges in other markets.
Content selected and edited with AI assistance. Original sources referenced above.
