TikTok has signed a deal to divest its U.S. entity to a joint venture controlled by American investors, per an internal memo seen by Axios.
Why it matters: A deal would end a yearslong saga to force TikTok’s Chinese parent ByteDance to sell the company’s U.S. operation to domestic owners to alleviate national security concerns.
Zoom in: The agreement is set to close on Jan. 22, per an internal memo sent by CEO Shou Chew.
Nearly one-third of the company will be held by affiliates of existing ByteDance investors, and nearly 20% will be retained by ByteDance.
Oracle, Silver Lake and Abu Dhabi-based MGX will collectively own 45% of the U.S. entity, which will be called “TikTok USDS Joint Venture LLC.”