(Updates with the most recent stock move in the second paragraph and Oracle's response in the eighth paragraph.)
Oracle (ORCL), Silver Lake, and MGX have signed deals with ByteDance's TikTok to form a new US joint venture overseeing the American version of the social media platform, media outlets reported Thursday, citing an internal memo.
Shares of Oracle rose 2.4% in recent premarket trading Monday.
Under the agreement, half of the US TikTok business will be owned by a consortium that includes Oracle, private equity firm Silver Lake, the United Arab Emirates investment firm MGX, and other investors, according to an internal TikTok memo by Chief Executive Shou Zi Chew that was obtained by news outlets.
ByteDance will continue to hold 19.9% of the new company while another 30.1% will be held by existing ByteDance investors, the memo reportedly said.
The company's seven-member board will be dominated by Americans, and the user data will be under the control of Oracle, the memo was cited as saying.
TikTok's algorithm will be retrained to "ensure the content feed is free from outside manipulation," AP cited the memo as saying.
The deal is expected to close on Jan. 22, the memo was cited as saying.
Oracle declined to comment in response to MT Newswires' inquiry. Silver Lake, MGX, ByteDance, and TikTok did not reply to requests for comment.
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