The Associated Press reports TikTok has finalized a deal to create a new American entity so it is not banned in the U.S. market.
The social media platform company signed agreements with investors including Oracle, Silver Lake and MGX to form the new U.S. venture.
TikTok’s American entity will ensure the platform uses data protections and algorithm security to “protect national security,” the company said in a statement.
U.S. user data will be stored locally in a system run by Oracle.
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Adam Presser, former TikTok head of operations and trust and safety, will be the American venture’s CEO. A seven-member, majority American board of directors will work with him alongside TikTok CEO Shou Chew.
