TikTok To Create Spin-off Company With Oracle Ownership

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Well we all knew it wasn’t going to be that simple! You didn’t think Oracle would just buy TikTok and move on as normal, did you? Sure enough, this just hit the wire! Oracle is planning on doing a spin-off! Just as they did with Musical.ly but worry not. Your favorite short form video site is here to stay….just maybe a little different than you’re used to.

Oracle plans take an ownership stake in a newly formed TikTok corporation as part of the recently announced deal, the Financial Times reports. The new arrangement will not cleave off TikTok regionally, but it will create a separate corporate entity for the app, in which Oracle will take a minority stake. Oracle will also ensure that data from American users is stored and processed in the United States, per the recommendations of the Committee on Foreign Investment in the United States (CFIUS).

Source: TheVerge.com

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