TikTok’s Chinese parent company, ByteDance, has signed binding agreements with three major investors to sell just over 80% of its U.S. assets to American and global investors, according to TikTok CEO Shou Zi Chew. The move is aimed at avoiding a U.S. government ban on the popular video-sharing app.
This agreement marks a significant step toward resolving years of uncertainty regarding TikTok’s presence in the United States. Concerns about the app’s future began in August 2020, when then-President Donald Trump attempted to ban TikTok, which now boasts more than 170 million American users.
Details of the agreement are consistent with those announced in September, when enforcement of a law requiring the sale of TikTok’s U.S. assets was postponed until January 20. The company has stated that the deal satisfies the necessary divestiture requirements.
Employees were informed that ByteDance and TikTok have reached binding agreements with three managing investors—Oracle, Silver Lake, and MGX—to establish a new joint venture named TikTok USDS Joint Venture LLC.
Oracle declined to comment on the matter, while the White House directed inquiries to TikTok. In a company memo, TikTok said the agreement would allow “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
The transaction, expected to close on January 22, is set to conclude prolonged efforts to require ByteDance to divest its U.S. business due to national security concerns.
According to the memo, Oracle, Silver Lake, and the Abu Dhabi-based MGX will collectively own 45% of the new entity. The U.S. joint venture will be structured so that 50% is held by a consortium of new investors—including Oracle, Silver Lake, and MGX, each with a 15% stake. An additional 30.1% will be held by affiliates of certain existing ByteDance investors, while ByteDance itself will retain a 19.9% stake.
ByteDance did not immediately respond to requests for comment.
