TikTok's Chinese owner ByteDance has signed binding agreements with U.S. and global investors to sell most of its American business, a TikTok executive told employees Thursday.
Half of the joint venture will be owned by a group of investors including Oracle, Silver Lake and Emirati investment firm MGX, according to a note sent by CEO Shaw Tzu Chu.
The deal, due to close on Jan. 22, will end years of efforts by Washington to force ByteDance to sell its U.S. operations on national security grounds.
The deal is similar to one unveiled in September when US President Donald Trump delayed enactment of a law that would ban the app unless it was sold.
TikTok said in a memo that the deal will allow “more than 170 million Americans to continue to discover a world of limitless opportunity as part of a vital global community.”
Under the agreement, ByteDance will retain 19.9% ​​of the business, while Abu Dhabi-based Oracle, Silver Lake and MGX will each hold 15%.
According to the memorandum, another 30.1% will be owned 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 took place after a long delay.
In April 2024, during President Joe Biden's administration, the US Congress passed a law banning the app on national security grounds unless it was sold.
The law was supposed to take effect on Jan. 20, 2025, but Trump delayed it several times while his administration hammered out a transfer deal.
In September, Trump said he spoke by phone with Chinese President Xi Jinping, who he said gave the green light to the deal.
The White House directed the BBC to TikTok when approached for comment.
Oracle declined to comment.
