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TikTok Signs Deal to Sell U.S. Unit to Investor-Led Joint Venture

The investor-led deal aims to satisfy U.S. national-security demands for separation from ByteDance.

Overview

  • Internal memos reviewed by Axios say TikTok has signed an agreement to transfer its U.S. entity to a joint venture controlled by investors.
  • CEO Shou Chew told employees the transaction is targeted to close on January 22, according to his internal memo.
  • Oracle, Silver Lake and Abu Dhabi–based MGX are set to hold about 45% of the new entity, affiliates of existing ByteDance investors roughly one-third, and ByteDance under about 20%.
  • The U.S. business will operate as TikTok USDS Joint Venture LLC, with some deal details still to be finalized.
  • The agreement caps years of pressure that included a 2020 order by President Donald Trump, a 2024 law upheld by the Supreme Court, and a September framework between Washington and Beijing enabling the investor-led structure.