TikTok to sign agreements for new US joint venture
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The news: TikTok chief executive Shou Chew told employees that the company and its parent, ByteDance, have signed binding agreements to establish a US joint venture that will be majority owned by American investors, Bloomberg reported.
In an internal memo reported by Bloomberg, Chew expressed that he was “pleased to share some great news,” announcing that agreements with Oracle Corp, Silver Lake, and MGX have been finalised, with a closing date set for 22 January 2026.
The context: Following over a year of negotiations, Washington facilitated the sale of the US division of ByteDance’s popular video app to a group of investors. If completed, the deal would resolve a long-standing tension in Beijing-Washington relations.
US officials have raised concerns over TikTok’s Chinese ownership, fearing that Beijing could exploit the app to gather data on US citizens or influence American users through its recommendation algorithm.
The law initially set a deadline for the 'sell-or-ban' requirement in January, but President Trump has recently moved it to January 2026.
What they said: “Upon the closing, the US joint venture, built on the foundation of the current TikTok US Data Security (USDS) organisation, will operate as an independent entity with authority over US data protection, algorithm security, content moderation and software assurance,” TikTok chief executive Shou Chew said in the memo.
The source: Bloomberg
