A major step has been taken to secure TikTok’s future in the United States after the company signed an agreement to sell its U.S. business to a group of American investors.
TikTok has entered into a deal with Oracle, Silver Lake and MGX, allowing the popular short video platform to continue operating in the country. The agreement was confirmed through an internal memo reviewed by a news agency.
The transaction is expected to close on January 22. In the memo, TikTok Chief Executive Officer Shou Zi Chew stated that both TikTok and its parent company ByteDance have signed binding agreements with the three investors.
Under the proposed structure, the new TikTok U.S. joint venture will be majority owned by American investors. A consortium led by Oracle, Silver Lake and MGX will collectively hold 50 percent of the venture, with each of the three firms owning 15 percent.
Affiliates of existing ByteDance investors will control 30.1 percent of the new entity, while ByteDance itself will retain a 19.9 percent stake, according to the memo.
The agreement is aimed at addressing long standing concerns around TikTok’s ownership and operations in the United States. By shifting majority ownership to American investors, the company is positioning its U.S. business to operate independently while maintaining continuity for its millions of users.
TikTok did not provide additional public details beyond the internal communication. The company has consistently stated that it is committed to complying with local regulations and ensuring uninterrupted service in the United States.
If completed as planned, the deal would mark a significant change in TikTok’s corporate structure in the U.S. and could shape the platform’s operations, governance and partnerships going forward.
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