00:00TikTok CEO Shozi Chu told employees that the company's U.S. operations will move into a new entity, TikTok-USDS Joint Venture LLC, majority owned and governed by U.S. investors.
00:12The deal, set to close January 22nd, brings in Oracle, Silver Lake, and Abu Dhabi-based MGX, while sharply reducing ByteDance's ownership to comply with U.S. national security law.
00:24Oracle will act as TikTok's trusted security partner, storing U.S. user data in domestic cloud centers and auditing compliance, while the app's recommendation algorithm will be restrained using U.S. user data.
00:37The move follows President Trump's executive order allowing time for divestiture, keeping TikTok online in the U.S., and sending Oracle shares up 5% in after-hours trading.
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