ByteDance Agrees To Sell Majority Of TikTok US
TikTok’s Chinese parent ByteDance has signed binding agreements to sell just over 80% of its US assets to a group of American and global investors, a move aimed at avoiding a US government ban on the short video platform.
TikTok chief executive officer Shou Zi Chew told employees on Thursday that the agreements were signed with three managing investors, Oracle, Silver Lake and MGX, paving the way for the creation of a new entity known as TikTok USDS Joint Venture LLC.
The transaction, expected to close on January 22, is seen as a major step towards ending years of uncertainty over TikTok’s future in the US, where the app is used by more than 170 million people. The divestment follows long-standing national security concerns raised by US authorities over ByteDance’s ownership.
According to an internal memo, the new US joint venture will be structured with 50% held by a consortium of new investors, including Oracle, Silver Lake and Abu Dhabi-based MGX with 15% each. Affiliates of certain existing ByteDance investors will hold 30.1%, while ByteDance will retain a 19.9% stake.
The structure broadly mirrors a proposal unveiled in September, when former US President Donald Trump delayed enforcement of a law that would ban the app unless ByteDance sold its US operations. At the time, Trump said the arrangement met the divestiture requirements.
TikTok said in the memo that the deal will enable “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.”
Oracle declined to comment, while the White House referred questions to TikTok. ByteDance did not immediately respond to a request for comment.
Reuters
