"TikTok has taken a decisive step towards securing its future in the United States after its Chinese owner, ByteDance, signed binding agreements with a group of US and international investors to operate the app's American business. In a memo to staff on Thursday, TikTok's chief executive, Shou Zi Chew, confirmed that the deal will see a new joint venture take control of the platform's US operations, bringing to an end years of political uncertainty and the threat of an outright ban on national security grounds."
"The transaction is expected to complete on 22 January. Under the agreement, a consortium of investors including Oracle, Silver Lake and Abu Dhabi-based MGX will collectively own half of the new entity. ByteDance will retain a 19.9 per cent stake, while the remaining shares will be held by affiliates of existing ByteDance investors. Oracle, Silver Lake and MGX will each take a 15 per cent holding."
"The deal aligns with a framework unveiled in September, when US President Donald Trump delayed enforcement of legislation that would have banned TikTok unless its US operations were sold. That law, passed by Congress in April 2024 under the Biden administration, had been due to take effect on 20 January 2025 but was repeatedly postponed as negotiations continued. TikTok said the agreement would allow "over 170 million Americans to continue discovering a world of endless possibilities" on the platform."
"The White House has previously indicated that Oracle will license TikTok's recommendation algorithm as part of the arrangement, with safeguards designed to address concerns over foreign influence and data security. The path to the deal has been marked by geopolitical tension. Trump said in September that he had spoken directly with Chinese president Xi Jinping, claiming Beijing had given its approval. However, the app's fate remained uncertain after US-China relations were strained by trade disputes and broader strategic rivalry."
ByteDance signed binding agreements with US and international investors to operate TikTok's American business, creating a new joint venture to control US operations. The transaction is expected to complete on 22 January. A consortium including Oracle, Silver Lake and Abu Dhabi-based MGX will collectively own half the new entity; ByteDance will retain a 19.9% stake and affiliates of existing investors will hold the remainder. The deal follows legislation that threatened a ban and delays to enforcement. Oracle is expected to license TikTok's recommendation algorithm with safeguards. Geopolitical tensions and strained US-China relations continued to complicate the platform's future.
Read at Business Matters
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