TikTok's Chinese owner ByteDance has signed binding agreements with US and global investors to operate its business in America, TikTok's boss told employees on Thursday.
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.
The deal, which is set to close on January 22, 2025, would end years of efforts by Washington to force ByteDance to sell its US operations over national security concerns.
It is in line with a deal unveiled in September, when former US President Donald Trump delayed the enforcement of a law that would ban the app unless it was sold.
In the memo, TikTok stated that the deal will enable over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.
Under the agreement, ByteDance will retain 19.9% of the business, while Oracle, Silver Lake, and the Abu Dhabi-based MGX will hold 15% each, with another 30.1% held by affiliates of existing ByteDance investors.
The agreement raises questions surrounding user privacy and TikTok's algorithm management, with some lawmakers expressing skepticism about the deal's effectiveness in safeguarding American users.
The move comes amidst ongoing tensions between the US and China, illustrating how TikTok has become a key element in the geopolitical landscape.
