TikTok reaches agreements on new US joint venture with closing set for 2026

Core Viewpoint - TikTok has signed agreements to establish a new U.S. joint venture with American-led investors, aiming to resolve ongoing political and legal challenges, with the transaction expected to close on January 22, 2026 [1][2]. Group 1: Company Developments - CEO Shou Chew announced the formation of a new TikTok U.S. joint venture, which will enable the platform to continue serving over 170 million users in the U.S. [2] - The company will provide further updates as it approaches the scheduled closing date of January 22, 2026 [3]. Group 2: Regulatory Context - The deal is part of a broader effort to separate TikTok's U.S. operations from its China-based parent company, ByteDance, in compliance with U.S. laws that restrict foreign adversaries from controlling social media platforms [5][6]. - An executive order signed by President Trump in September allowed the TikTok deal to proceed, emphasizing the need for cooperation from China to finalize the transaction [5][6]. Group 3: Ownership Structure - The new ownership structure will see ByteDance owning less than 20% of TikTok U.S., with Oracle and Silver Lake identified as main owners, while existing shareholders and global firms will hold the remainder [7]. - Reports indicate that ByteDance investors would hold a 35% stake in the new venture [7]. Group 4: Legislative Background - A law enacted last year under President Biden banned TikTok and similar apps controlled by foreign adversaries due to national security concerns regarding data security and foreign influence operations [8].