TikTok's Chinese parent company agrees to sell its US subsidiary to local investors, according to media reports

Washington.- ByteDance, the Chinese parent company of the popular video platform TikTok, has agreed to sell its U.S. operations to a holding company led by American investors in order to continue operating legally in the North American country, according to several media outlets that have had access to a company memorandum this Thursday.

The memo was shared by ByteDance CEO Shou Chew, and indicates that the new joint venture that will take over TikTok's operations on US soil will be majority-owned by the information technology giant Oracle, the private fund Silver Lake and the Emirati state investment fund MGX. These three entities will have 45% of the shares, while around 33% will be in the hands of subsidiaries of the main investors behind ByteDance, which would maintain control of approximately 18% of the remaining shareholding. You can also read: https://deultimominuto.net/tecnologia/tiktok-anuncia-una-inversion/ The document states that the agreement must be finalized on January 22nd, the day before the deadline given to the Department of Justice to suspend TikTok's operations in the U.S. if a new company sufficiently detached from ByteDance has not been established, as stipulated by a law passed by the U.S. Congress in 2024.

Negotiations surrounding TikTok's operation in the U.S.

The rule argues national security reasons and points out that ByteDance should not have access to the servers that store the data of users of the popular short video application.

After returning to power in January, U.S. President Donald Trump repeatedly extended the implementation of the law so that his Administration could negotiate the sale of TikTok's U.S. operations.

At the end of September, Washington and Beijing, after a series of meetings in which the trade war between the two powers was also discussed, announced a framework agreement for the operation. Trump did not announce a new extension for TikTok beyond December 16, but he signed an executive order on September 25 that tied the hands of the Department of Justice until January 23.

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In recent weeks, the lack of materialization of said agreement, above all because neither ByteDance nor the regulators in China had yet publicly confirmed any operation, had led to the thought that everything was in limbo. CategoriesEconomy