ByteDance, the Chinese parent company of TikTok, has finalized binding agreements with three significant investors to sell just over 80% of its U.S. assets to avoid a government ban. TikTok CEO Shou Zi Chew announced this development to employees on Thursday.
This deal represents a crucial step in resolving the uncertainty surrounding TikTok’s future in the U.S., a situation that has persisted since August 2020, when then-President Donald Trump attempted to ban the app, which now has over 170 million active American users.
The agreements align with a September announcement where Trump postponed enforcement of a law that would ban the app unless its Chinese owners sold it. Following this, the deal has been confirmed to meet the terms of the divestiture requirements. The arrangements involve the formation of a new U.S. joint venture called TikTok USDS Joint Venture LLC, managed by Oracle, Silver Lake, and Abu Dhabi’s MGX.
Oracle has refrained from commenting on the agreement, while the White House redirected inquiries to TikTok. The company stated that this deal will allow “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.” Scheduled to close on January 22, the deal aims to conclude years of efforts to compel ByteDance to divest its U.S. operations due to national security concerns.
According to internal memos, Oracle, Silver Lake, and MGX will own a collective 45% of the new joint venture. In the ownership structure, 50% will be held by the new investor consortium, which includes Oracle, Silver Lake, and MGX-each obtaining 15%. Additional shares will be allocated with 30.1% to existing ByteDance investors’ affiliates and 19.9% retained by ByteDance itself. The company has not yet responded to requests for comment regarding these developments.
Original Source: https://indianexpress.com/article/world/tiktok-signs-deal-to-sell-us-unit-to-american-investor-led-venture-10427920/
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Publish Date: 2025-12-19 04:59:00
