TikTok Announces Deal to Continue US Operations with New American-Led Entity
TikTok announced a deal that will allow the platform to continue operating in the United States, a move expected to bring changes for its 200 million American users, according to the BBC. The agreement establishes a majority-American owned and operated entity to control TikTok's US operations.
The new entity, named TikTok USDS Joint Venture LLC, is backed primarily by US investors and governed by a board of seven directors, the BBC reported. TikTok CEO Shou Zi Chew will be among the directors. While the details of the deal remain limited, ByteDance, TikTok's Chinese owner, will retain a 19.9% stake in the business, according to the BBC.
The deal comes as TikTok's future in the US has been uncertain due to concerns about data security and potential influence from the Chinese government. The content recommendation algorithm, which determines the videos users see on the app's "For You" page, will be managed by the new US-based entity, according to the BBC.
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