Washington: The United States and China have reached a significant agreement to transfer TikTok's US operations to a consortium predominantly comprised of American investors, led by Oracle and Silver Lake. According to a report by the Semafor news portal, this transaction has received approval from both nations and is anticipated to be finalized within the week.
According to Philippines News Agency, the agreement outlines that TikTok's parent company, ByteDance, will maintain a 20 percent stake in the venture. Oracle, Silver Lake, and UAE-based MGX will each acquire a 15 percent share. The deal also includes investments from Susquehanna, Dragoneer, DFO, and the family office of Dell Chairman Michael Dell.
Scheduled to close on January 22, the new joint venture will take over responsibilities for data security and content moderation within the United States. This development follows reports from Chinese media, highlighting the operational changes to be implemented.
TikTok, boasting approximately 170 million users in the US, has been a dominant force as the most downloaded app in both 2021 and 2022, as indicated by data from Sensor Tower. The platform's future was uncertain following a 2024 law approved by the administration of former American leader Joe Biden, mandating TikTok's sale or discontinuation in the US by January 19, 2025.
Upon assuming office on January 20, 2025, President Donald Trump signed a decree delaying the platform's block, later extending this postponement. In September, a mutual understanding was reached between China and the United States, paving the way for the current deal.
Source: Philippines News Agency
