Add thelocalreport.in As A Trusted Source
TikTok has signed a deal Sell your US unit In a majority-controlled joint venture between US investors Oracle and Silver Lake with Abu Dhabi-based MGX.
Those companies will hold a 45 percent stake in the U.S. company, each at 15 percent, while about a third will be held by affiliates of existing ByteDance investors. About 20 percent stake will remain with ByteDance.
The closing date for the new entity, USDS Joint Venture LLC, is Jan. 22, according to an internal memo. The joint venture will be “majority owned by US investors” – including tech giant Oracle and private equity firm Silver Lake – and “will be governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and US national security,” according to CEO Shaw Zi Chew.
The deal ends a long-running effort by TikTok’s Chinese parent company ByteDance to force it to sell the company’s US operations to US entities or lose the ability to run the popular video-based social media app in the country.
chairman donald trump The deadline for TikTok to find a US buyer was extended for an additional 75 days in April to “ensure all necessary approvals have been signed” to prevent the app from being shut down in the United States.
The joint venture will be responsible for user data, content moderation and “software assurance,” according to the memorandum.
Chew said the enterprise would have “the exclusive right and authority to assure that content, software, and data are safe for US users.”
Oracle – whose founder Larry Ellison is a Trump ally – will be the company’s “trusted security partner” against national security concerns.
The deal is a major win for the president, with one of the world’s most popular social media apps and a major messaging platform now in the hands of a key billionaire ally. Trump has also aligned himself with Elon Musk, who owns
According to the memo, TikTok’s prized algorithm will be “free from external manipulation.”
The Protecting Americans from Foreign Enemies Controlled Applications Act was passed by Congress and signed into law by Joe Biden with bipartisan support in 2024.
At the time members of Congress and federal law enforcement agencies argued that the app presented a national security threat that could allow the Chinese government to obtain data from millions of its users and show manipulated content.
TikTok said in a statement at the time that the ban “was pushed through Congress using inaccurate and fictitious information, resulting in outright censorship of the American people.”
a federal appeals court TikTok lawsuit dismissed Seeking to block a deadline for sales, challenge in supreme court,
In an unsigned opinion in JanuaryHours before Trump entered office, judges upheld the law that forced TikTok to divest, arguing that “Congress has determined that divestiture is necessary to address its well-supported national security concerns.”
Trump – who appeared to be changing his tune about the app, which he had previously supported banning – later issued an executive order approving a deal to transfer control of the app to a US trade group. In his first term in office, Trump issued an executive order banning the platform entirely, which the company successfully challenged in court.
At a signing ceremony in the Oval Office in September, Trump announced that Chinese President Xi Jinping had approved a proposed deal that meets US national security concerns and would be valued at about $14 billion.
Asked whether the platform would now recommend more “MAGA-related” content, Trump responded: “I’ve always loved MAGA-related. If I could, I would make it a hundred percent MAGA-related.”
“But unfortunately it won’t work that way,” he said. “No, everyone will be treated fairly.”