TikTok signs a deal forming a new U.S. unit including investors Oracle and Silver Lake

"TikTok has signed agreements with three major investors - Oracle, Silver Lake and MGX - to form a new TikTok U.S. joint venture, ensuring the popular social video platform can continue operating in the United States.The deal is expected to close on Jan. 22, according to an internal memo seen by The Associated Press. In the communication, CEO Shou Zi Chew confirmed to employees that ByteDance and TikTok signed the binding agreements with the consortium."

""I want to take this opportunity to thank you for your continued dedication and tireless work. Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world," Chew wrote in the memo to employees. "With these agreements in place, our focus must stay where it's always been-firmly on delivering for our users, creators, businesses and the global TikTok community.""

"Half of the new TikTok U.S. joint venture will be owned by a group of investors - among them Oracle, Silver Lake and the Emirati investment firm MGX, who will each hold a 15% share. 19.9% of the new app will be held by ByteDance itself, and another 30.1% will be held by affiliates of existing ByteDance investors, according to the memo. The memo did not say who the other investors are and both TikTok and the White House declined to comment."

TikTok signed binding agreements to create a U.S. joint venture with investors including Oracle, Silver Lake and Emirati firm MGX, with the deal expected to close Jan. 22. Half of the new venture will be owned by the investor group, with Oracle, Silver Lake and MGX each holding 15%; ByteDance will retain 19.9% and affiliates of existing investors will hold 30.1%. The venture will be governed by a seven-member majority-American board and subject to terms to protect Americans' data and U.S. national security. U.S. user data will be stored locally in a system run by Oracle, and the algorithm will be retrained on U.S. data. Users should experience no change and advertisers will continue to reach global audiences.

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