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TikTok’s Chinese owner ByteDance has signed a binding agreement with U.S. and global investors to sell most of its U.S. operations, 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 UAE investment firm MGX, according to a memo sent by CEO Shou Zi Chew.
The deal, set to close on Jan. 22, will end years of efforts by Washington to force ByteDance to sell its U.S. operations over national security concerns.
The deal is in line with one announced in September, when U.S. President Donald Trump delayed enforcement of a law that would have banned the app unless it was sold.
TikTok said in the memo that the deal will allow “more than 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 Abu Dhabi-based MGX will each hold 15%.
According to the memorandum, another 30.1% of the shares will be held by affiliates of existing ByteDance investors.
The White House previously said Oracle, co-founded by Trump supporter Larry Ellison, would license TikTok’s recommendation algorithm as part of the deal.
The deal was struck after long delays.
In April 2024, during the administration of President Joe Biden, the US Congress passed a law banning the app due to national security concerns unless it was sold.
The law was originally scheduled to take effect on January 20, 2025, but was delayed multiple times while the Trump administration reached an agreement to transfer ownership.
Trump said in September that he had spoken with Chinese President Xi Jinping by phone and said Xi Jinping approved the agreement.
When contacted for comment, the White House referred the BBC to TikTok.
Oracle declined to comment.
