TikTok’s Chinese owner, ByteDance, signed binding agreements with three major investors to sell just over 80% of the company’s US assets to American and global investors to avoid a US government ban, TikTok CEO Shou Zi Chew told employees on Thursday.The deal is a major step toward resolving years of uncertainty about the short video app’s future in the US since August 2020, when then President Trump first tried unsuccessfully to ban the app that is now used regularly by more than 170 million Americans.The ...

Core Points - TikTok is finalizing a joint venture to manage its U.S. operations, effective January 22 [1] - The joint venture is a result of a Congressional order requiring ByteDance to divest its U.S. TikTok operations [2] - The ownership structure will see ByteDance retain 20%, existing investors' affiliates hold one-third, and Oracle, Silver Lake, and MGX will own the remaining 45% [2] Group 1: Political Context - National security concerns regarding TikTok have been raised since the Trump administration, leading to threats of a ban unless sold to a U.S. owner [4] - The Biden administration initially delayed the ban but the issue resurfaced in 2024 [4] - Trump's current administration has shifted to a supportive stance towards TikTok, influenced by the platform's role in his election campaign [5] Group 2: Business Operations - Despite political challenges, TikTok's business has continued to grow, with significant advertising efforts showcased during the NewFronts [6] - The head of North American ad sales expressed confidence in the platform's future and commitment to continued investment [7] Group 3: Industry Implications - The involvement of Oracle may have implications for Hollywood, particularly due to connections with Paramount Skydance [3] - Speculation exists that Paramount could leverage this relationship to enhance its competitive offerings against tech giants [3]