TikTok has signed a deal to sell its US business to a consortium of investors led by Oracle. Here's what to know https://t.co/aKjudtnWyC ...

Core Viewpoint - TikTok has entered a joint-venture agreement that will introduce new investors in its US operations, while maintaining control over key business functions under its current owner, ByteDance [1][2]. Group 1: Joint Venture Structure - The new investors include Oracle, Abu Dhabi investment firm MGX, and private-equity firm Silver Lake, who will manage national security-related tasks such as data management and algorithm training [1][2]. - TikTok's current owner, ByteDance, will retain control over essential business lines, including e-commerce and advertising, ensuring that TikTok global continues to operate under its oversight [2][3]. Group 2: Ownership and Valuation - The joint venture will see Oracle, Silver Lake, and MGX acquiring a combined 45% stake, while existing ByteDance investors will hold around 30%, and new investors will take 5%. ByteDance will maintain just under 20% ownership of the US business [5]. - The deal is valued at $14 billion, significantly lower than the $50 billion estimate from Morningstar analysts, reflecting a focus on national security rather than business growth [4]. Group 3: Employee Concerns - Employees at TikTok are uncertain about the implications of the new agreement for their organizational structure and leadership, with some not expecting significant changes [6].

Market Dynamics - TikTok's US operations are spinning off, posing a challenge to existing social media giants [1] - The transition of TikTok's US operations could introduce friction across the consumer experience, advertiser infrastructure, and algorithmic performance [1] - The new US-based TikTok will manage interoperability, e-commerce, and advertising, which need to be global to maintain TikTok's value [2] Competitive Landscape - YouTube also has a short-form video product competing with TikTok [1] - TikTok's US digital ad spending is currently 4%, a fraction of Meta's 23% and Google's 25% [3] - TikTok could gain share from Snap if the changes do not negatively impact user engagement and advertiser results [3] Data and User Base - The new US-based company is taking responsibility for US data, content moderation, and algorithm security [2] - TikTok has 170 million US users [1]

Core Insights - TikTok has made significant progress in maintaining its US operations by signing a deal to spin off its US unit, which has positively impacted Oracle shares, increasing nearly 8% [1] - The new US-based TikTok will be responsible for US data management, content moderation, and algorithm security, requiring retraining of its algorithm on US user data while integrating with the global TikTok [2] - TikTok currently holds only 4% of the US digital ad spending market, significantly lower than Meta's 23% and Google's 25%, indicating potential for growth if user engagement and advertiser results remain stable [3] Group 1 - TikTok's new US entity is preparing to compete with existing social media giants, raising questions about its ability to manage transitions for its 170 million US users and advertisers [1] - The transition may introduce challenges in consumer experience, advertiser infrastructure, and algorithmic performance, as highlighted by industry analyst Brian Weezer [1] - Maintaining a consistent experience for users, advertisers, and creators is crucial amid the upcoming changes [1] Group 2 - The new US TikTok will manage interoperability, e-commerce, and advertising, which must be globally integrated to sustain its value [2] - Successful execution of these transitions will directly impact TikTok's share of US digital ad spending [2] - If TikTok can navigate these changes effectively, it may gain market share from competitors like Snap, which is currently experiencing a decline in stock value [3]

Oracle’s stock jumped 7% Friday after the cloud provider joined a group of investors slated to lead TikTok’s U.S. operations. In a memo to employees Thursday, TikTok CEO Shou Zi Chew said the social media company’s U.S. division will be run by a joint venture that includes Oracle, Silver Lake and Abu Dhabi-based MGX. The deal is expected to close on Jan. 22. ...

TikTok has signed a deal to sell its US business to a consortium of investors led by Oracle. Here's what to know https://t.co/n8mdkpnmnH ...

TikTok Deal & Algorithm - Oracle 将负责管理和保护美国用户数据，对算法进行许可，Bytedance 仍拥有代码 [2][3] - 算法将在 Oracle 服务器上进行训练，生成与全球其他地区不同的内容 [3] - Bytedance 的所有权将低于 20%，从 90.9% 大幅下降 [3] - 算法代码库的完整性至关重要，利用美国数据重新训练算法应提供强大的解决方案 [6][7] National Security & Consumer Perspective - 数据隔离确保美国境外潜在对手无法访问算法，内容审核策略和数据由 Oracle 控制 [13] - 消费者对国家安全问题的担忧有所减少，更关注内容质量 [14][15] - 该协议旨在保护美国利益和安全，为消费者提供更多选择 [17] Media Landscape & Competition - 短视频娱乐正在改变人们消费内容的方式，TikTok 和 YouTube 处于领先地位 [21] - Hollywood 需要一个健康的生态系统，工作室需要足够的收入来与 TikTok 和 YouTube 等平台竞争 [26] - 华纳兄弟与 Netflix 或 Paramount 的合并对于维持生态系统的健康和盈利能力至关重要 [26] Potential Risks - 中国政府尚未明确批准该协议，这可能是一个风险因素 [18]

After years of debate and scrutiny, TikTok has signed an agreement for a new U.S. joint venture. By January 22, TikTok USDS Joint Venture LLC will be managed by three investors: Oracle, Silver Lake, and Abu Dhabi-based MGX. Former TikTok CEO Kevin Mayer joins CNBC’s Beijing Bureau Chief Eunice Yoon to discuss the implications of this deal for geopolitics and data safety. Executive wine editor of Food & Wine Ray Isle brings his holiday sips to set, including recommendations at varying price points and varyin ...

Tik Tok's long- aaited US spin-off now official. We think the company signing a deal to create a new entity backed by a group of mostly American investors including Oracle. And for today's tech, Julia Borston has details and what it might mean for the social media landscape in this country.Morning, Julia. >> Good morning, Carl. Well, this is a key milestone uh for the deal for US Tik Tok's US operations to become a joint venture.And that deal is set to close on January 22nd. This new entity called Tik Tok U ...

It looks more likely that we indeed have something of a tick- tock deal where US buyers will take the American portion. You after some of the negotiations in Madrid were talking about how this deal, how this company was part and parcel of a variety of matters when it comes to negotiation negotiating with your Chinese counterparts. So, have you had more discussions about this deal with Tik Tok.Does it seem likely that China will let it happen. >> Uh, so there are there are two layers to the Tik Tok deal. One ...