TikTok US Joint Venture to Take Effect in January

TikTok’s Chinese parent company, ByteDance, has signed binding agreements with US and international investors to operate the social media platform’s business in the United States.

TikTok’s chief executive officer, Shou Zi Chew, reportedly informed employees of the development on Thursday. According to a memo circulated to staff, the new arrangement will establish a joint venture in which a group of investors will hold a majority stake.

Under the agreement, Oracle, Silver Lake, and Abu Dhabi-based investment firm MGX will each acquire a 15 per cent stake in the business. ByteDance will retain 19.9 per cent ownership, while affiliates of existing ByteDance investors will hold a combined 30.1 per cent, the memo said.

The deal is expected to close on January 22 and would bring to an end years of efforts by US authorities to force the sale of TikTok’s American operations over national security concerns.

The agreement follows a framework announced in September, after then US President Donald Trump delayed enforcement of legislation that would have banned the app unless its US operations were sold.

In the memo, TikTok said the arrangement would allow more than 170 million Americans to continue using the platform as part of its global community.