TikTok finalises deal to sell majority of US assets to American-led venture
TikTok's parent company, ByteDance, has reached a significant agreement to sell more than 80% of its US assets to a group of investors, including American firms, in order to avert a potential ban in the United States.
TikTok's CEO, Shou Zi Chew, confirmed the deal to employees on Thursday (December 18), marking a major step towards resolving the uncertainty surrounding the app's future in the US.
The move follows years of efforts to resolve national security concerns, which began in 2020 when former President Donald Trump attempted to ban the platform. TikTok is currently used by over 170 million Americans.
In line with a proposal from September, ByteDance and TikTok have entered into binding agreements with three investors: Oracle, Silver Lake, and Abu Dhabi-based MGX, to form a new joint venture named TikTok USDS Joint Venture LLC.
Oracle declined to comment on the deal, while the White House referred questions back to TikTok.
The company stated that the agreement would ensure "over 170 million Americans continue to access a world of endless possibilities within a global community."
The deal, set to close on January 22, 2026, is seen as the final step in resolving long-standing attempts to force ByteDance to divest its US operations due to national security concerns.
Under the new structure, Oracle, Silver Lake, and MGX will collectively own 45% of the joint venture, with 30.1% held by ByteDance's existing investors, and 19.9% retained by ByteDance itself.
Reuters
