TikTok inked a deal to sell its U.S. entity to a joint venture group with several American investors on Thursday, CEO Shou Zi Chew said in an internal company memo.
The deal follows months of the Trump administration attempting to reach an agreement with Chinese-based TikTok owner ByteDance to delay a Supreme Court ruling that forced the U.S. entity to divest from ByteDance or face a nationwide ban. The ruling upheld a law passed by Congress in 2024 that required the TikTok ByteDance divestment.
The deal involves an agreement between American companies Oracle and Silver Lake and Abu Dhabi-owned MGX to make up 45% of the joint venture, according to the memo. Existing ByteDance investors will make up 30.1% of the share, ByteDance itself will hold 19.9%, and the remaining 5% will be owned by other American investors in the joint venture.
President Donald Trump had signed multiple executive orders to allow TikTok to continue its U.S. operations as negotiations took place. The White House released details of a deal negotiated by Trump in September that included Oracle, Silver Lake, and MGX in the agreement. That deal positioned Oracle to provide security operations on the app and includes Silver Lake and MGX as key leaders.
The security of the app has been of primary concern to U.S. leadership, as ByteDance is a Chinese-owned company.
WHITE HOUSE RELEASES DETAILS ON DEAL TO SAVE TIKTOK IN US
The White House referred the Washington Examiner to TikTok for comment on the deal.
TikTok did not respond to the Washington Examiner’s requests for comment.