CALIFORNIA (Kashmir English): TikTok has inked a deal where it will sell a sufficient stake in its operations within the US to meet the divest or ban law applicable in the US. This will pave the way for the video-sharing app to operate in the US market.
The news was, however, reaffirmed by TikTok Chief Executive Officer Shou Zi Chew in a memo that was sent to employees. The closing date for this acquisition, as proposed by TikTok, is January 22, 2026.
Under this agreement, a new entity called TikTok USDS Joint Venture LLC will be formed. This new company shall have shares redistributed among new U.S. investors, existing Byte Dance investors, and Byte Dance itself.
Fifty percent of the joint venture will be owned by a group of new U.S.-based investors, including Oracle, Silver Lake, and MGX, with each holding a 15 percent stake. Affiliates of certain existing ByteDance investors will own 30.1 percent, while ByteDance will retain a 19.9 percent stake.
TikTok temporarily shut down in the United States earlier this year when it failed to meet earlier requirements for the sale of its assets. Following this, US President Donald Trump gave them several extensions in order for them to complete a transaction.
