TikTok has reached an agreement to sell its U.S. operations to a joint venture that will be controlled by American investors. This is considered the end of years of political and legal disputes related to national security.
The editorial, citing Axios, reports that in the newly formed entity, Oracle, Silver Lake, and the UAE-based company MGX will jointly control 45 percent of the shares. Associated structures of existing ByteDance investors will hold approximately one-third of the shares.
According to the information, ByteDance, the owner of TikTok, will retain a stake of around 20 percent in the new entity. This structure is intended to meet the U.S. side's data security and oversight requirements.
The agreement aims to address national security concerns raised by the U.S. administration in light of TikTok's potential ties to China and ensures the platform's continued operation in the U.S. market.