TikTok Signs Deal to Sell U.S. Business Amid Regulatory Pressures

TikTok has signed a deal to sell its U.S. business to three American investors, aiming to alleviate regulatory pressures regarding its Chinese ownership. The investors are Oracle, Silver Lake, and Abu Dhabi-based MGX, each holding a 15% stake in the new joint venture.

The deal structure includes a 30.1% stake held by affiliates of existing ByteDance investors and a 19.9% stake retained by ByteDance. Oracle will license TikTok's recommendation algorithm as part of the agreement, enhancing its management of TikTok's U.S. user data.

An internal memo confirmed by Reuters and the Associated Press states that the new venture will be majority owned by American investors and governed by a seven-member board of directors. This move follows a U.S.

Supreme Court ruling that required the Chinese-owned ByteDance to divest its U.S. operations or face a ban, and was supported by an executive order from President Donald Trump. TikTok CEO Shou Zi Chew communicated to employees that the joint venture would adhere to terms that protect American data and U.S. national security.

ByteDance expressed its commitment to complying with applicable laws to ensure TikTok remains available to American users.