TikTok’s parent company ByteDance has signed binding agreements with American and global investors to sell just over 80% of its US assets, forming a new joint venture named TikTok USDS Joint Venture LLC. The move aims to address years of uncertainty about the app’s future in the United States and avoid a potential government ban.
ByteDance and TikTok confirmed on Thursday, December 18, that they have entered binding agreements with three managing investors:
Oracle
Silver Lake
MGX (Abu Dhabi-based)
The new entity will be called TikTok USDS Joint Venture LLC, designed to manage TikTok’s operations in the United States.
TikTok CEO Shou Zi Chew told employees that the agreements involve selling over 80% of TikTok’s US assets to American and global investors, helping the company comply with US regulatory demands.
This agreement is a crucial step toward resolving years of uncertainty surrounding TikTok in the US. The app has been under scrutiny since August 2020, when then-President Donald Trump attempted, unsuccessfully, to ban the platform due to national security concerns. Today, TikTok is regularly used by more than 170 million Americans.
The deal aligns with the divestiture requirements outlined in September, when Trump delayed the enforcement of the law banning TikTok in the US until January 20, allowing the company time to negotiate a sale of its US assets.
According to the memo shared with employees:
The US joint venture will be 50% owned by the consortium of new investors, including Oracle, Silver Lake, and MGX, with 15% each.
30.1% will be held by affiliates of certain existing ByteDance investors.
19.9% of TikTok USDS will be retained by ByteDance.
The deal is expected to close on January 22, ending years of regulatory pressure to divest the US business.
Oracle has declined to comment on the deal.
The White House referred all queries to TikTok.
In an internal memo, TikTok stated that the deal will allow "over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community."
ByteDance has not responded to requests for comment at the time of reporting.
The sale represents a major milestone for TikTok in the US:
Ensures continuity for millions of US users
Addresses national security concerns raised by regulators
Allows TikTok to operate with new investor oversight, mitigating political and legal risks
The move highlights TikTok’s effort to balance global operations while complying with US regulations, potentially setting a precedent for other Chinese tech firms operating in sensitive markets.