TikTok\u2019s future in the United States is now clear. The popular social network owned by the Chinese company ByteDance has reached an agreement to sell its US division to a new joint venture formed by local investors. The news was recently shared with employees through an internal memo signed by the company\u2019s CEO, Shou Chew.<\/p>\n\n\n\n
Although some details are still being finalised, the deal is expected to be officially completed before 22 January<\/strong>.<\/p>\n\n\n\n The subsidiary will be renamed TikTok USDS Joint Venture LLC<\/strong>. Around 50% of the new company will be controlled by a consortium made up of Oracle<\/strong>, Silver Lake<\/strong> and MGX<\/strong>.<\/p>\n\n\n\n Oracle, the US technology giant, has already been working with TikTok on managing and hosting user data in the country. Silver Lake is one of the world\u2019s most influential investment firms, with stakes in companies such as Airbnb and Twitter. Completing the group is MGX, a fund based in the United Arab Emirates, known for its focus on projects linked to artificial intelligence and advanced technologies, and backed by the country\u2019s sovereign wealth funds.<\/p>\n\n\n\n The remaining 50% of the company will continue to belong to investors linked to ByteDance and to the Chinese company itself, although no further details have been made public.<\/p>\n\n\n\n This move comes after years of tension between Washington and TikTok. The US administration pushed through a law that would have forced ByteDance to divest its business in the country if it wanted to avoid a total ban on the app. The aim was to prevent a Chinese company from controlling a platform with millions of American users.<\/p>\n\n\n\n First attempts to block TikTok date back to 2021, during Donald Trump\u2019s first term in office, although they never materialised. Later, under Joe Biden\u2019s presidency, the measure remained on the table but was never enforced. During his second term, Trump chose to delay its implementation to allow room for negotiations, which have now resulted in this sale agreement.<\/p>\n\n\n\nA new company for TikTok in the US<\/h3>\n\n\n\n
From the threat of a ban to a deal<\/h3>\n\n\n\n