By Merve Berker
TikTok signed an agreement to sell its American operations to a new American-led joint venture in a move to secure the app’s future in the US, according to a memo by CEO Shou Chew to employees, media reports said Thursday.
The transaction, which has not yet been finalized, comes in response to a US law passed last year requiring ByteDance, TikTok’s Chinese parent company, to divest 80% of its US assets or face a nationwide ban, according to CNN.
“We have signed agreements with investors regarding a new TikTok U.S. joint venture,” said Chew, adding that the deal would “enable over 170 million Americans to continue discovering a world of endless possibilities,” the outlet quoted the CEO.
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, while ByteDance will retain a 19.9% stake, according to the memo obtained by CNN.
The Trump administration announced in September that the agreement satisfies the criteria for a “qualified divestiture,” and enforcement of the original ban-or-sale law has been postponed for 120 days, giving parties until Jan. 22, 2026, to complete the transaction.
Chew said ByteDance and TikTok had agreed to the deal terms, but acknowledged that “more work remains” to finalize the arrangement.