Washington [US], December 19: ByteDance, the parent company of TikTok, has officially signed an agreement to sell TikTok's US operations to American investors to avoid a ban from Washington.
TikTok CEO Shou Zi Chew announced to company employees on December 18 that the company had sold 80% of its US stake in TikTok to three major US and global investor groups, according to Reuters.
The agreement is a major step forward in resolving TikTok 's future in the US, after President Donald Trump unsuccessfully ordered a ban on the social media platform in August 2020 but later reversed his stance.
In 2024, the US Congress passed legislation requiring ByteDance to sell TikTok US, otherwise the social media platform, used by 170 million Americans, would be banned for national security reasons. After taking office in January, President Trump repeatedly postponed the deadline to pursue a deal.
A joint venture in the US will be established under the new agreement. In it, three investors - Oracle, Silver Lake, and MGX - will hold 50% of the shares. Approximately 30% will belong to a group of existing ByteDance shareholders, and the remaining 20% will be controlled by ByteDance.
Oracle is a major American technology corporation, Silver Lake is a privately held company, while MGX is an investment firm backed by the United Arab Emirates (UAE).
In September, the Trump administration announced it had reached an agreement with China to transfer TikTok's US stake to a group of mostly American investors. He signed an executive order declaring the deal valid and postponing the ban for another 120 days.
In the announcement, Shou Zi Chew said that there is still much work to be done before the agreement is finalized, but the parties are aiming to conclude it before January 22, 2026.
TikTok and ByteDance have both agreed to the terms of the deal. Mr. Chew also stated that the agreement "will allow more than 170 million Americans to continue exploring a world of endless possibilities as part of a vibrant global community."
Source: Thanh Nien Newspaper
