SAN FRANCISCO (AP) — TikTok has signed a deal to sell its U.S. business to three American investors — Oracle, Silver Lake and MGX — ensuring the popular social video platform can continue operating in the United States.
The deal is expected to close on Jan. 22, according to an internal memo seen by The Associated Press. CEO Shou Zi Chew told employees in the memo that ByteDance and TikTok have signed binding agreements with the three investors.
Half of the new TikTok U.S. joint venture will be owned by a consortium of investors — among them Oracle, Silver Lake and MGX will each hold a 15% share. Another 30.1% will be held by affiliates of existing ByteDance investors and 19.9% will be retained by the China-based ByteDance, according to the memo.
The U.S. venture will have a new, seven-member majority-American board of directors, the memo said. It will also be subject to terms that “protect Americans’ data and U.S. national security.”
U.S. user data will be stored locally in a system run by Oracle.
