TikTok signs deal to sell US assets to American investor group, moves closer to long-term future

TikTok has signed an agreement to sell its US assets to a group of American investors, according to a memo sent to employees by CEO Shou Chew. The move brings the company closer to securing its long-term future in the United States, though the transaction has not yet been finalized.

The deal follows a law passed last year requiring TikTok’s US operations to be separated from its China-based parent company, ByteDance, or face a ban. Enforcement of the law was repeatedly delayed as negotiations continued to shift control of the app to American ownership.

In his memo, Chew said TikTok has signed agreements with investors to create a new TikTok US joint venture, allowing more than 170 million Americans to continue using the platform. Axios first reported the agreement.

Under the proposed structure, the US version of TikTok would be controlled by a joint venture that is 50 percent owned by a consortium of American investors, including Oracle, private equity firm Silver Lake, and Emirati-backed investment firm MGX. Affiliates of certain existing ByteDance investors would hold just over 30 percent, while ByteDance would retain a 19.9 percent stake.

Chew noted that additional steps are still required before the deal can close, but all parties are working toward a target completion date of January 22, 2026. Both TikTok and ByteDance have agreed to the terms.

The law banning TikTok without divestment technically took effect in January and requires ByteDance to sell approximately 80 percent of TikTok’s US assets to non-Chinese investors. The agreement is intended to meet that requirement.

This is a developing story and updates are expected as the transaction moves forward.

Credit: CNN Newsource

Explore: NBCPalmSprings.com, where we are connecting the Valley.