TikTok is splitting its American operations right down the middle to dodge a ban. Staff are being divided between a new US joint venture and an entity staying under ByteDance. Employees focused on global services and commerce will remain with the original parent company. Those handling data protection and algorithm security will transfer to the new venture.
This restructuring aims to comply with legislation demanding a divestment of its US assets. The deal involves major investment firms taking significant ownership stakes. The agreement values the American operations at a figure much lower than some earlier analyst predictions. The joint venture plans to retrain its core algorithm using only data from domestic users.
The move follows extended negotiations and multiple deadline extensions for the forced sale. Current ownership rules would leave ByteDance with a minority stake in the new entity. Other shares will be distributed among the investing consortium and existing stakeholders. The popular app faced a temporary shutdown for American users under the original law before returning online.
This restructuring aims to comply with legislation demanding a divestment of its US assets. The deal involves major investment firms taking significant ownership stakes. The agreement values the American operations at a figure much lower than some earlier analyst predictions. The joint venture plans to retrain its core algorithm using only data from domestic users.
The move follows extended negotiations and multiple deadline extensions for the forced sale. Current ownership rules would leave ByteDance with a minority stake in the new entity. Other shares will be distributed among the investing consortium and existing stakeholders. The popular app faced a temporary shutdown for American users under the original law before returning online.
