TikTok is splitting its US staff into different companies as it prepares for a sale

"TikTok is preparing to carve off parts of its US business, but not all US workers are joining the new entity. Some US staff were told this week that they will not work for the new joint venture, called TikTok USDS Joint Venture LLC, led by managing investors Oracle, Silver Lake, and MGX. Instead, they will work for a separate TikTok global entity that will remain under ByteDance's ownership, called TT Commerce & Global Services LLC."

"The change, outlined in a memo sent to impacted employees, includes workers who focus on US products that will remain tied to TikTok's global operations after the sale closes. In December, TikTok's CEO Shou Chew told staff those business lines would include "certain commercial activities, including e-commerce, advertising, and marketing." Other US workers, such as those focused on data protection or algorithm security, would work under the USDS Joint Venture entity, according to Chew's memo. He said the deal would close on January 22."

"If the proposed TikTok deal goes through, Oracle, MGX, and Silver Lake would each own 15% of the new US joint venture. Affiliates of existing ByteDance investors would get around 30%. Five percent would go to an unnamed group of new investors, and ByteDance would keep just under 20% of the business to comply with the ownership requirements of the US divestment law that sparked the sale."

TikTok is dividing parts of its US operations between a new US joint venture and a ByteDance-owned global entity. Some US employees were told they will join TikTok USDS Joint Venture LLC, led by Oracle, Silver Lake, and MGX, while others will transfer to TT Commerce & Global Services LLC remaining under ByteDance ownership. Workers tied to commercial activities such as e-commerce, advertising, and marketing will stay with the global entity. Employees focused on data protection or algorithm security will join the USDS joint venture. The sale is expected to close on January 22, and ByteDance will retain just under 20% to meet US divestment law requirements.

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