New U.S. TikTok could be divided into two companies, Reuters says

ByteDance will play a bigger than expected role in the new TikTok entity that is set to be sold to U.S. and global investors to address U.S. national security concerns, three sources familiar with the matter told Reuters, in a new structure that appears to lay out the continued and significant involvement of the China-based global tech giant. ByteDance will be maintaining ownership of TikTok’s U.S. business operations and will cede control of the app’s data, content and algorithm to the newly formed joint venture, the people said. Sources said the new U.S. TikTok would be divided into two companies. The joint venture consisting of Oracle (ORCL), Silver Lake and others that was announced by U.S. President Donald Trump will serve as the backend operations to the U.S. company and handle U.S. user data and algorithm. ByteDance is expected to be the single largest minority shareholder in the joint venture, sources said.