TikTok's Chinese owner ByteDance has signed binding agreements with US and global investors to operate its business in America, TikTok's boss told employees on Thursday.
Half of the joint venture will be owned by a group of investors, including Oracle, Silver Lake, and the Emirati investment firm MGX, according to a memo sent by chief executive Shou Zi Chew.
The deal, which is set to close on January 22, aims to end years of efforts by Washington to force ByteDance to sell its US operations due to national security concerns.
This agreement is aligned with a deal unveiled in September, when US President Donald Trump delayed the enforcement of a law that would ban the app unless it was sold.
In the memo, TikTok expressed that the deal will allow over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community.
Under the agreement, ByteDance will hold a 19.9% share, while investors Oracle and Silver Lake will each retain 15%, and an additional 30.1% will be held by affiliates of existing ByteDance investors.
The White House previously stated that Oracle, co-founded by Trump ally Larry Ellison, will license TikTok's recommendation algorithm under the terms of the deal.
After numerous delays, the deal comes as the app's fate was uncertain amidst ongoing political tensions between the US and China.
Experts reflect that TikTok has become a bargaining chip in the wider US-China relationship, indicating the nuances of international diplomacy affecting digital platforms.
Despite this, critiques have arisen regarding user privacy and the implications of new investors taking charge, with some users expressing concern over the maintenance of existing platform features that support small business owners.
Some, like small business owner Tiffany Cianci, voiced hopes that the incoming investors would protect user experiences vital for entrepreneurs, indicating the community's investment in the platform's future.
