TikTok Owner Signs Deal To Avoid US Ban

TikTok's owner ByteDance has signed a deal creating a U.S.-focused joint venture majority-owned by American and global investors, allowing the app to avoid a U.S. ban while ByteDance retains a minority stake. The BBC reports: Half of the joint venture will be owned by a group of investors including Oracle, Silver Lake and the Emirati investment firm MGX, according to a memo sent by chief executive Shou Zi Chew. The deal, which is set to close on January 22, would end years of efforts by Washington to force ByteDance to sell its US operations over national security concerns. It is in-line with a deal unveiled in September, when US President Donald Trump delayed the enforcement of a law that would ban the app unless it was sold.

TikTok said in the memo that the deal would enable 'over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.' Under the agreement, ByteDance will retain 19.9% of the business, while Oracle, Silver Lake and Abu Dhabi-based MGX will hold 15% each. Another 30.1% will be held by affiliates of existing ByteDance investors, according to the memo.

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