TikTok has secured an agreement with Oracle and a group of other U.S. investors to restructure its American operations.
A move that significantly reduces the risk of a nationwide ban and brings the company closer to meeting U.S. regulatory requirements ahead of the January deadline.
The deal, which is expected to close on January 22, comes nearly a year after U.S. legislation mandated the sale or shutdown of TikTok’s U.S. business over national security concerns.
According to TikTok CEO Shou Zi Chew, the transaction will see a new joint venture established to oversee TikTok’s U.S. entity.
Under the proposed ownership structure, Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment firm MGX will collectively hold a 45% stake in the new company.
ByteDance, TikTok’s China-based parent company, will retain a minority interest, though details of its final ownership share have not been fully disclosed.
