In order to ensure that the well-known social video platform can carry on operating in the US, TikTok has entered into agreements with three significant investors, Oracle, Silver Lake, and MGX, to create a new TikTok US joint venture.
After years of struggles that started in August 2020 when President Donald Trump initially attempted to unsuccessfully ban the app owing to its Chinese roots, the agreement is a significant milestone for the well-known short video app that is frequently used by over 170 million Americans.
An internal memo obtained by The Associated Press states that the arrangement is anticipated to finalize on January 22. CEO Shou Zi Chew informed staff members that ByteDance and TikTok had signed legally binding contracts with the consortium.
With these agreements in place, we must continue to prioritize serving our users, creators, companies, and the worldwide TikTok community. A group of investors, including Oracle, Silver Lake, and the Emirati investment firm MGX, will own half of the new TikTok US joint venture, with each holding a 15% stake. According to the memo, ByteDance will own 19.9% of the new app, while affiliates of current ByteDance investors will own an additional 30.1%.
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