TikTok has reached a decision regarding the sale of its US operations, as confirmed by reports from various outlets, including Axios, The Hollywood Reporter, and CNBC. The deal is set to be finalized on January 22, with Oracle, Silver Lake, and Abu Dhabi’s MGX acquiring 45 percent of TikTok’s US business. The Chinese parent company, ByteDance, will retain a 20 percent stake.
The remainder of the ownership will consist of affiliates related to existing ByteDance investors. In January, TikTok temporarily ceased operations in the US as part of enforcement related to a divestment law. Throughout the previous year, President Donald Trump issued multiple extensions allowing TikTok to negotiate a sale of its US assets. In September, a framework for such a deal was agreed upon by the US and China, resulting in another extension that concluded on December 16.
In a memo to employees, TikTok CEO Shou Zi Chew emphasized the importance of their efforts in maintaining operational performance and expressed confidence in the platform’s future growth in the United States and globally. He also stated that the company’s focus will remain on delivering value for its users and creators.
Reports suggest that the US-based TikTok will implement an algorithm resembling that of ByteDance, but it will be adjusted using data from US users and managed by Oracle. As of now, TikTok has not provided an official comment regarding these developments.
Source: https://www.theverge.com/news/847858/tiktok-sale-deal-memo-january-close