Hold onto your FYPs, TikTok fanatics – TikTok's new American chapter is about to kick off in a major way! The buzz is all about the app signing a brand-new deal to keep those viral dances and trending challenges coming your way, courtesy of a fresh alliance with some top-tier investors: Oracle, Silver Lake, and Abu Dhabi's MGX.
So what does this mean for you? The play here is to make sure TikTok survives and thrives in the USA – with the tech giants working towards a new venture to keep the app in America’s top playlists. The deal is on track to close by January 22, giving us the green light to keep dancing, sharing, and laughing with our friends Stateside!
In a pep talk to the TikTok team, ByteDance CEO Shou Zi Chew gave a huge shoutout for all their hard work, making it clear that the mission remains – delivering epic content to creators, users, and the whole TikTok fam all over the globe.
But here's the twist: the recommendation magic that TikTok is famous for? It's getting an upgrade! As part of the deal, TikTok is going to amp up their rec system using exclusively US user data, promising a feed free from outside tinkering – all stored secure in Oracle-run systems. Safety first, amirite?
Here's how it shakes out with ownership: Oracle, Silver Lake, and MGX are taking 15% each, while ByteDance keeps 19.9% – making sure US-based investors hold a solid half of the pie. This setup is part of the need to keep the app rolling under new “divest-or-ban” rules, making sure TikTok can stay alive and legit in the USA.
Why the hustle, you ask? Back in the day, the app faced some shaky ground with laws pointing at a potential ban unless ownership shifted to American hands – something initiated back in the Trump era. Well, don’t worry – the new blueprint seems to check the boxes needed to keep TikTok trending still, thanks to some deadline extensions.
While the deal's final price tag is still under wraps, estimates clock TikTok’s US spin-off at around $14 billion, with investor excitement already boosting Oracle’s stocks by nearly 7% this week!
Stay tuned, this story is still spinning and what’s next is bound to be just as fire as the hottest TikTok trend!