TikTok signs deal to transfer US operations to an American-led joint venture, meeting divestment law and preventing a potential ban.
ANKARA: TikTok has signed an agreement to transfer its US operations to a new American-led joint venture.
The move aims to secure the app’s future in the United States, according to a memo from CEO Shou Chew to employees.
The deal responds to a US law requiring TikTok’s Chinese parent company, ByteDance, to divest 80% of its US assets or face a nationwide ban.
“We have signed agreements with investors regarding a new TikTok US joint venture,” Chew stated.
He added the deal would “enable over 170 million Americans to continue discovering a world of endless possibilities.”
The joint venture will be 50% owned by a group of American investors including Oracle, Silver Lake and Emirati-backed MGX.
Just over 30% will be held by affiliates of existing ByteDance investors.
ByteDance will retain a 19.9% stake in the new entity.
The Trump administration announced the agreement satisfies the criteria for a “qualified divestiture.”
Enforcement of the original ban-or-sale law has been postponed for 120 days.
Parties now have until January 22, 2026, to complete the transaction.
Chew said ByteDance and TikTok had agreed to the deal terms.
He acknowledged that “more work remains” to finalise the arrangement. – Bernama
