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TikTok's owner, ByteDance, has signed to form a joint venture with investors to avoid the US ban.
According to a Thursday, December 18, memo sent by chief executive Shou Zi Chew, half of the joint venture will be owned by a group of investors, including Silver Lake, Oracle and the Emirati investment firm MGX.
The deal, set to close on January 22, would end Washington's efforts to force ByteDance to sell its US operations over national security concerns.
Under the agreement, ByteDance will retain 19.9% of the business, while Oracle, Silver Lake and MGX will hold 15% each.
Moreover, another 30.1% will be held by affiliates of existing ByteDance investors.
Previously, the White House noted that Oracle, which was co-founded by Trump supporter Larry Ellison, will license TikTok's recommendation algorithm as part of the deal.
During Biden's administration in 2024, the US Congress passed a law to ban the social media app over national security concerns, unless it was sold.
The law, which was set to get into effect on January 20, was pushed back multiple times by Trump as his administration tried to work out a deal with the TikTok owner.
