TikTok’s Chinese parent company, ByteDance, has finalized binding agreements with a consortium of US and global investors to divest the majority of its American operations. The landmark deal, announced by TikTok’s chief executive Shou Zi Chew to employees on Thursday, aims to resolve long-standing national security concerns raised by the US government.

The agreement designates that a significant portion of the joint venture will be held by a group of prominent investors. This group includes technology giant Oracle, private equity firm Silver Lake, and the United Arab Emirates-based investment firm MGX, as detailed in a internal memo circulated by the CEO. This structure seeks to create a more independent US-based entity.

With a projected closing date of January 22, this transaction is poised to conclude years of intense scrutiny and pressure from Washington. The Trump administration had previously sought to ban the popular video-sharing app, citing potential risks to American data and national security, a move that had been repeatedly delayed.

This development echoes an earlier proposal unveiled in September, when then-President Donald Trump put a hold on enforcing a law that would have mandated the sale of TikTok’s US business. The administration’s concerns centered on ByteDance’s ties to the Chinese government and the potential for data access.

In its communication to staff, TikTok emphasized the positive implications of the sale, stating that it will ensure “over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.” The company highlighted its commitment to its US user base and its role in fostering cultural exchange.

The White House, when approached by the BBC for comment on the agreement, directed inquiries to TikTok. This suggests a cautious approach from the current administration, allowing the company to provide further details on the transaction and its compliance with national security directives.

Read Original

Keywords: TikTok US sale, ByteDance investors, Oracle TikTok deal, national security concerns, US TikTok operations, Shou Zi Chew announcement, TikTok joint venture, app divestiture