ByteDance, TikTok’s Chinese parent company, has signed binding agreements to sell just over 80% of its U.S. assets to American and global investors.
The deal comes after years of uncertainty and threats of a ban on TikTok in the U.S., which has over 170 million American users.
The big picture: The agreement fulfills U.S. government requirements for TikTok’s Chinese owners to divest their U.S. operations to address national security concerns.
- Three main investors – Oracle, Silver Lake, and Abu Dhabi-based MGX – will form a new joint venture called TikTok USDS Joint Venture LLC.
- Oracle, Silver Lake, and MGX will collectively own 45% of the new entity, with each holding a 15% share.
- A consortium of new investors will hold 50% of the U.S. joint venture; 30.1% will go to certain existing ByteDance investors, and ByteDance itself will keep 19.9%.
What we’re watching: The deal is scheduled to close on January 22 and would end ongoing U.S. efforts to force ByteDance to divest TikTok’s American business.
