TikTok has signed an agreement to transfer its U.S. business into a new arrangement controlled by American investors, a move aimed at addressing U.S. national security concerns tied to its China-based parent company, ByteDance. The deal is designed to keep TikTok available in the United States by avoiding penalties that could cut it off from U.S. app stores and web-hosting services if ByteDance does not sever ties. Several reports describe Oracle as central to the plan, with an Oracle-led investor group involved and Oracle’s cloud infrastructure positioned as the backbone for U.S. operations and data handling. If completed, the arrangement would bring a measure of stability for U.S. creators and small businesses that rely on TikTok—at least in the near term—by reducing the risk of an ab...
TikTok has signed an agreement to transfer its U.S. business into a new arrangement controlled by American investors, a move aimed at addressing U.S. national security concerns tied to its China-based parent company, ByteDance. The deal is designed to keep TikTok available in the United States by avoiding penalties that could cut it off from U.S. app stores and web-hosting services if ByteDance does not sever ties. Several reports describe Oracle as central to the plan, with an Oracle-led investor group involved and Oracle’s cloud infrastructure positioned as the backbone for U.S. operations and data handling. If completed, the arrangement would bring a measure of stability for U.S. creators and small businesses that rely on TikTok—at least in the near term—by reducing the risk of an abrupt service disruption.
Highlights:
- Investors named: TikTok CEO Shou Chew told employees the new entity would include major investors Oracle, Silver Lake, and Abu Dhabi-based MGX.
- Data oversight: One version of the plan says the American-controlled joint venture would place control of TikTok’s U.S. data and operations with the investor group.
- Closing windows: Proposed closing dates differed across reports, with one outlet citing Jan. 22 and another citing Feb. 22.
- Oracle tailwind: MarketWatch reported Oracle shares rose as investors weighed the prospect of TikTok-related cloud and infrastructure business.
Perspectives:
- TikTok leadership: TikTok’s CEO Shou Chew described a joint-venture structure agreed with ByteDance and backed by major investors, presenting it as a path to keep operating in the U.S.. (Le Monde)
- U.S. government position (as described): U.S. policy pressure has focused on national security concerns connected to ByteDance and on forcing separation from the parent company as a condition for continued U.S. distribution and hosting. (NPR)
- Oracle and investors: Reporting portrayed Oracle as a key participant, with its cloud business positioned as the operational backbone of the U.S. setup, aligning with investors’ interest in a clearer governance structure. (MarketWatch)
- ByteDance (as described): Multiple outlets framed the agreement as ByteDance’s step toward divesting or restructuring TikTok’s U.S. operations to meet U.S. requirements and avoid a potential ban. (New York Post)
Sources:
- TikTok signs deal for sale of U.S. operations to American investors - cbsnews.com
- TikTok signs deal to give U.S. operations to Oracle-led investor group - npr.org
- TikTok’s Chinese owner ByteDance inks deal to sell US operations to American investors, including Oracle - nypost.com
- Oracle’s stock is rising. Why TikTok’s U.S. deal could be good news for the tech company. - marketwatch.com
- TikTok Agreed to Transfer Its U.S. Business to a Joint Venture Controlled by American Investors. Oracle, Silver Lake, and MGX Will Take Control of Data and Operations Under a Deal Set to Close on February 22 - reddit.com
- TikTok signs joint venture deal to avoid US ban threat - lemonde.fr