TikTok has finalized a deal for its U.S. entity, with parent company ByteDance selling a majority stake to non-Chinese investors, ensuring the app’s continued operation in the United States.
The agreement concluded before the Trump Administration’s deadline that mandated the app’s divestment from ByteDance or face a ban. ByteDance will maintain 20 percent ownership of the new entity. TikTok’s investors will collectively hold 80 percent, with Oracle, Silver Lake, and MGX, an Emirati state-owned investment firm, each acquiring 15 percent. Dell’s CEO investment firm is also among the investors.
Terms of the deal were previously circulated last month, following TikTok CEO Shou Chew’s internal memo confirming an agreement with an investor group. This resolution concludes protracted negotiations, preventing a U.S. ban on the application.
TikTok announced the joint venture will secure American user data within Oracle’s U.S. cloud environment. The entity will retrain TikTok’s algorithm using U.S. user data and manage content moderation for the U.S. market. The venture ensures interoperability, allowing users access to international content and creators an international audience. TikTok stated, “The safeguards provided by the Joint Venture will also cover CapCut, and Lemon8 and a portfolio of other apps and websites in the US.”
A seven-member board of directors will oversee the new entity, predominantly comprising Americans. Board members include Shou Chew, TikTok’s Chief Executive Officer; Egon Durban, Silver Lake co-CEO; Kenneth Glueck, Oracle Executive Vice President; and David Scott, MGX Chief Strategy and Safety Officer.
