TikTok has reached a significant milestone in securing its long-term future in the United States, announcing that it has signed a deal to spin off its U.S. operations into a new joint venture.
This move follows a law passed last year that mandated TikTok’s U.S. version must be separated from its Chinese parent company, ByteDance, or face a ban in the U.S.
The deal also follows previous delays by the Trump administration, which sought to transfer TikTok’s control to American ownership.
In a memo sent to employees on Thursday, TikTok CEO Shou Chew confirmed that the agreements with investors regarding the new U.S. joint venture had been finalized.
According to the terms, the venture will be controlled by a group of investors that includes Oracle (NYSE:ORCL), private equity firm Silver Lake, and Emirati-backed investment firm MGX, who will collectively own 50% of the joint venture.
ByteDance affiliates will hold just over 30%, and ByteDance itself will retain 19.9%.
Chew’s memo emphasized that the deal would allow over 170 million American users to continue using TikTok, preserving their access to “a world of endless possibilities” while becoming part of a “vital global community.”