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Key Takeaways
- TikTok agreed to a new joint venture that will be controlled by American investors, according to reports Thursday.
- Oracle, Silver Lake and MGX are set to hold a combined 45% stake in the joint venture.
TikTok finally has a deal.
CEO Shou Zi Chew told employees in an internal memo that ByteDance, the social media platform’s Chinese parent company, has agreed to create a joint venture granting a group of American investors a controlling stake in TikTok, Axios and Bloomberg reported late Thursday.
The joint venture’s investors will reportedly include cloud computing giant Oracle (ORCL), private equity firm Silver Lake and Abu Dhabi-based MGX, which combined are set to own a 45% stake.
Why This Is Significant
The agreement stands to end a years-long push by the U.S. government—under both the Biden and Trump administrations—to force a sale of TikTok to an American owner, citing national security concerns.
ByteDance will retain a 20% stake, with close to one-third held by affiliates of ByteDance investors. The agreement is expected to close on Jan. 22.
Oracle declined to comment. TikTok, Silver Lake, and MGX did not respond to Investopedia’s requests for comment in time for publication.
The news comes weeks ahead of a January deadline for TikTok to agree to a sale bringing it under American control or face a ban in the U.S., after President Donald Trump extended the deadline with an executive order for the fourth time.
Shares of Oracle, which have slumped recently amid worries about an AI bubble and its dependence on a few big clients, jumped over 5% in extended trading Thursday.
