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TikTok reaches deal with investors on its US business
Business Insider· 2025-12-18 23:22
Core Points - TikTok has reached a deal with investors to form a new joint venture for its US operations, following a law that required its owner, ByteDance, to divest or face a ban due to being classified as a "foreign adversary-controlled" company [1][3] - The new joint venture will operate independently in areas such as US data protection and content recommendation algorithm training, while still being connected to TikTok's global business lines like e-commerce and advertising [2] - The deal comes after a lengthy legal battle, where TikTok argued that the divest-or-ban law violated the First Amendment, but the Supreme Court upheld the law [3] Financial Aspects - The sale of TikTok's US operations is valued at around $14 billion, as approved by an executive order signed by President Donald Trump [4] - The buyer group is expected to include "four or five world-class investors," with Oracle and Larry Ellison mentioned as part of the deal [4]
TikTok reaches agreements on new US joint venture with closing set for 2026
Yahoo Finance· 2025-12-18 23:17
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].
TikTok signs deal for sale of its U.S. unit to joint venture
Youtube· 2025-12-18 22:54
Core Insights - TikTok has finalized agreements with investors for a new US joint venture, with a closing date set for January 22, 2026, as per a memo from CEO Shou [1] - The joint venture will be structured with 50% ownership by a consortium of new investors, including Oracle, Silverlake, and MGX, each holding 15%, while 30.1% will be held by affiliates of existing investors, and 19.9% will be retained by ByteDance [2][3] Ownership Structure - The joint venture's ownership will consist of 50% held by new investors, with Oracle being the largest holder among them [3] - The remaining 50% will include 30.1% from existing investors and 19.9% retained by ByteDance, which is crucial for meeting the requirement of US ownership exceeding 50% and reducing ByteDance's stake below 20% [2][3] Operational Focus - The US joint venture will be responsible for overseeing data protection, algorithm security, content moderation, and software assurance [2]
TikTok signs deal for sale of its U.S. unit to joint venture
CNBC Television· 2025-12-18 22:54
confirmed with sources close the situation that Tik Tok has signed the agreements with its investors regarding a new Tik Tok US joint venture. We've obtained a memo sent from Shou, the CEO of Tik Tok to employees with an update in the US business in which he confirms the closing date of January 22nd, 2026. This is the date from um that Trump had set as the the final deadline.He notes that they have signed the agreement and he notes that the US joint venture will be half held 50% held by a consortium of new ...
X @CNN Breaking News
CNN Breaking News· 2025-12-18 22:52
TikTok signs deal backed by President Trump to sell its US assets to a group of American investorshttps://t.co/81M3U82NS4 ...
X @Bloomberg
Bloomberg· 2025-12-18 22:36
TikTok CEO Shou Chew told employees that the social media app’s parent company, ByteDance, signed binding agreements to create a US joint venture majority-owned by American investors https://t.co/xQM1ub8mfd ...
TikTok signs deal to sell US unit to American investor-led venture
Reuters· 2025-12-18 22:28
ByteDance's TikTok has signed a deal to sell its U.S. entity to a joint venture controlled by American investors, according to a memo from TikTok CEO seen by Reuters. ...