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TikTok’s Chinese owner ByteDance has signed binding agreements with US and global investors to sell the majority of its business in America, TikTok’s boss told employees on Thursday.<\/p>\n
Half of the joint venture will be owned by a group of investors, including Oracle, Silver Lake and the Emirati investment firm MGX, according to a memo sent by chief executive Shou Zi Chew.<\/p>\n
The deal, which is set to close on 22 January, would end years of efforts by Washington to force ByteDance to sell its US operations over national security concerns.<\/p>\n
The deal is \u200bline with one unveiled in September, when US President Donald Trump delayed the enforcement of a law that would ban the app unless it was sold.<\/p>\n<\/div>\n
In the memo, TikTok said the deal will enable “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community”.<\/p>\n
Under the agreement, ByteDance will retain 19.9% of the business, while Oracle, Silver Lake and Abu Dhabi-based MGX will hold 15% each.<\/p>\n
Another 30.1% will be held by affiliates of existing ByteDance investors, according to the memo.<\/p>\n
The White House previously said that Oracle, which was co-founded by Trump supporter Larry Ellison, will licence TikTok’s recommendation algorithm as part of the deal.<\/p>\n
The deal comes after a long delay. <\/p>\n
In April 2024, during President Joe Biden’s administration, the US Congress passed a law to ban the app over national security concerns, unless it was sold.<\/p>\n
The law was set to go into effect on 20 January 2025 but was pushed back multiple times by Trump, while his administration worked out a deal to transfer ownership.<\/p>\n
Trump said in September that he had spoken on the phone to China’s President Xi Jinping, who he said had given the deal the go ahead.<\/p>\n
The White House referred the BBC to TikTok when contacted for comment.<\/p>\n
Oracle declined to comment.<\/p>\n<\/div>\n