"TikTok has agreed to sell its U.S. operations to a group of American investors including Oracle, Silver Lake, and Abu Dhabi-based MGX in a deal backed by President Donald Trump that will allow the wildly popular video app to continue operating in the United States. The agreement, according to Axios, is set to close on January 22 and creates a new TikTok US joint venture in which a consortium of new investors will hold 50% of the company."
"ByteDance affiliates will retain 30.1%, while the Chinese parent company itself will keep a 19.9% stake, according to an internal memo reviewed by US media. TikTok's chief executive, Shou Zi Chew, told staff that binding agreements had been signed. The White House has confirmed that Oracle, co-founded by Trump ally Larry Ellison, will license a copy of TikTok's powerful recommendation algorithm and expand its existing role managing the data of the app's 170 million U.S. users."
"A potential ban was hinged on national security concerns. In September, Trump said he had spoken directly with China's leader, adding: I had a very good talk with President Xi [Jinping] and he gave us the go ahead. A month later, Treasury Secretary Scott Bessent declared that Washington and Beijing had reached a final deal on TikTok. During his first term, Trump threatened to ban TikTok outright in 2020."
TikTok agreed to sell its U.S. operations to a consortium of American investors including Oracle, Silver Lake, and Abu Dhabi-based MGX. The transaction is set to close on January 22 and will form a new TikTok US joint venture. The consortium will hold 50% of the company, ByteDance affiliates will retain 30.1%, and ByteDance itself will keep a 19.9% stake. Oracle will license a copy of TikTok's recommendation algorithm and expand management of data for the app's 170 million U.S. users. The deal addresses national security concerns after threats of a ban and congressional legislation forcing a sale or shutdown. Some lawmakers criticized the arrangement as favoring wealthy allies.
Read at www.mediaite.com
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