Axios: TikTok Signs Deal to Sell Its U.S. Business
TikTok, owned by the Chinese company ByteDance, has reached an agreement to sell its U.S. business to a group of American investors. The information was reported by Axios, citing an internal company document.
According to Report, the transaction is expected to be finalized on January 22 of next year. Under the terms of the deal, Oracle, Silver Lake, and the Abu Dhabi–based investment firm MGX will jointly acquire a 45% stake in TikTok’s U.S. subsidiary. ByteDance will retain a 20% stake, while approximately one-third of the shares will go to investors affiliated with the company.
It is reported that on September 5, former U.S. President Donald Trump signed an executive order approving the deal. Under the order, TikTok’s operations in the United States will come under the control of American businesses, with U.S. citizens holding the largest stake and control in the new entity.
ByteDance’s ownership will be reduced to less than 20%, while the remaining shares will belong to “certain investors,” whose identities have not been disclosed. The company will be governed by a new board of directors operating under rules designed to ensure the protection of Americans’ data and U.S. national security.
The valuation of the new company is estimated at approximately $14 billion.
