The social media giant creates a new U.S. joint venture in an effort to retain its user base.
TikTok has officially formed a new U.S. joint venture in response to a bipartisan law passed by Congress in 2024. The law required TikTok’s parent company, ByteDance, to sever its U.S. users from the rest of the company over national security concerns. The U.S. and China both signed off on the “qualified divestiture,” in which the tech companies Oracle, MGX, and Silver Lake will each hold 15 percent of U.S. operations. ByteDance will retain 19.9 percent, with eight other investors and entities holding the rest of the shares.
TikTok officials stated, “The majority American-owned Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users.” The new operators will “retrain, test, and update” the social media app’s content recommendation algorithm.
As the Lord Leads, Pray with Us…
- For senators and representatives to be prudent in their consideration of laws to protect national security and individual privacy.
- For the president and officials in his Cabinet as they work to balance commerce, trade, and national security.
Sources: ABC News, CBS News, MSN
