Your favourite distraction is officially under new management.
A group of American investors just dropped 14 billion dollars to buy the US operations of the app. This last minute deal saves 200 million Americans from having to find a new way to waste their lunch breaks, all thanks to the 2024 divest-or-ban law.
The app is no longer a Chinese secret, but it is not exactly a mom-and-pop shop either. Larry Ellison and his tech giant Oracle have taken a 15% stake, alongside private equity firm Silver Lake and the Abu Dhabi-based firm MGX, who also grabbed 15% each. ByteDance, the original parent company, keeps a tiny 19.9% slice of the pie just to keep things interesting.
Who Holds the Remote?
The three managing investors now own your data and get to decide what counts as “appropriate” content. While the app stays the same on your phone, the back end is getting a complete makeover. Oracle will store the data and manage the algorithm, while people like Michael Dell have also chipped in to keep the lights on.
| The New TikTok Table | The Investors | The Slice |
| The Data Guardian | Oracle (Larry Ellison) | 15% |
| The Tech Specialist | Silver Lake | 15% |
| The AI Partner | MGX (Abu Dhabi) | 15% |
| The Silent Partner | ByteDance | 19.9% |
| The Backup Crew | Michael Dell and others | Remaining shares |
Location, Location, Location
Before you get back to your scroll, you might want to read those new terms of service you ignored. TikTok now wants to know your precise location, not just which city you are in. It seems the new American owners want to know exactly which aisle of the supermarket you are in when you watch a cat video.
There is also a fair bit of drama about who is pulling the strings. Critics worry that the propaganda concerns have simply shifted from Beijing to Washington. Since the new bosses are quite friendly with the current US President, some people wonder if the “For You” page might start looking a bit like a campaign advert.
A Technical Divorce
The 2024 law says ByteDance must have zero operational input, but they still own the original algorithm. They are basically leasing a copy to the Americans, which sounds like a very complicated bit of digital renting. Whether this “joint venture” actually solves the national security riddle remains a mystery, but for now, the music keeps playing.
The US entity now operates under the catchy name TikTok USDS Joint Venture LLC. It has a seven person board of directors who are supposed to keep our data safe and our content moderated. It is essentially the same app you know and love, just with a lot more billionaire oversight and a new home in the cloud.
The Lawyer’s Deep Dive: What’s Actually in the Small Print?
An attorney recently took a look at the updated terms of service so you do not have to, and the news is a bit of a mixed bag. While we can all celebrate that TikTok was not taken away, the new contract is, in her words, quite aggressive. By hitting that “I Agree” button, you have essentially signed over a lot more than just your lunch break.
The biggest shocker? Your content is now a free-for-all for the new owners. While you technically still own your videos, the moment you upload them, you grant the TikTok USDS Joint Venture a royalty free, irrevocable, and sub-licensable license to use them. This means they can copy, remix, and even use your face in their paid adverts without giving you a single penny. For creatives, musicians, and artists, this is like giving a gallery the right to photocopy your paintings and sell the prints while you stand in the corner for free.
AI Training and the End of Privacy
It turns out your drafts, private messages, and even those videos you never published are not as private as you think. The new terms allow TikTok to use all your content to train its AI. Your voice, your likeness, and your creative work are now feeding a big machine brain, and there is no way to opt out once you have agreed.
The privacy policy has also had a rather invasive upgrade. TikTok can now peek at sensitive information like your racial origin, religious beliefs, mental health diagnosis, and even your sexual orientation. They claim they need this to show you “relevant” adverts, but many users are finding it a bit terrifying.
If you value your privacy, you might want to head into your settings and turn off “Targeted Ads” and “Contact Syncing.” But let us be honest, most of us will likely keep scrolling because we are too addicted to the “For You” feed to leave.
Your data is now in American hands, so at least the targeted adverts might finally get your shoe size right.
Related topics: Internet
