ByteDance, the parent company of the social media platform TikTok, has executed binding agreements for the sale of a majority interest in its United States business operations. This information was communicated to employees by TikTok's Chief Executive, Shou Zi Chew, on Thursday.
Transaction Details
According to a memo from Mr. Chew, a newly formed joint venture is slated to own half of the divested business. The investor group participating in this venture includes Oracle, Silver Lake, and MGX, an Emirati investment firm.
Regulatory Context and Timeline
The transaction is set to finalize on January 22. This agreement aims to conclude a period of engagement initiated by the United States government, which had sought to compel ByteDance to sell its US operations due to concerns related to national security. The terms of this deal align with a previous proposal made public in September. During that period, then-US President Donald Trump issued a delay on the enforcement of legislation that would have banned the TikTok application without a sale.