TikTok’s Chinese owner ByteDance inks deal to sell US operations to American investors, including Oracle

TikTok Agrees to Sell Majority of US Assets to American Investors

TikTok’s Chinese owner, ByteDance, has signed binding agreements with three major investors to sell just over 80% of the company’s US assets to American and global investors, according to TikTok CEO Shou Zi Chew. This move aims to avoid a potential ban by the US government.

This deal marks a significant step in resolving the uncertainty surrounding TikTok’s future in the US, dating back to August 2020 when former President Trump attempted to ban the app. The agreement, which aligns with a previously announced deal in September, meets the divestiture requirements set by the US government.

Under the new agreement, ByteDance and TikTok have partnered with managing investors Oracle, Silver Lake, and MGX to establish a new joint venture named TikTok USDS Joint Venture LLC. The deal is expected to close on January 22, putting an end to years of national security concerns.

Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively own 45% of the new entity, while a consortium of new investors, including Oracle, Silver Lake, and MGX, will hold 50% of the US joint venture. The remaining ownership will be divided among existing ByteDance investors and ByteDance itself.

This agreement ensures that over 170 million Americans can continue to engage with TikTok and be part of its global community. The deal signifies a positive step forward for the popular short video app in the US market.

ByteDance has yet to provide a comment on the recent developments.