TikTok has reached an agreement to sell its U.S. operations to a group of American investors, a move that will allow the popular short-video platform to continue operating in the United States, according to an internal company memo.
Under the deal, TikTok’s U.S. business will be acquired by Oracle, Silver Lake and MGX, with the transaction expected to close on January 22, the memo reviewed by The Associated Press said.
TikTok CEO Shou Zi Chew wrote that parent company ByteDance and TikTok have signed binding agreements with the three investors to establish a new U.S.-based joint venture.
The structure of the new entity will give a 50% stake to a consortium of new investors, with Oracle, Silver Lake and MGX each holding 15%. Affiliates of existing ByteDance investors will own 30.1%, while ByteDance will retain a 19.9% stake, according to the memo.
The agreement is aimed at addressing long-standing U.S. concerns over data security and ownership while ensuring TikTok’s continued presence in the American market.
