TikTok's U.S. operations will be housed in a new joint venture, according to a memo sent to employees by CEO Shou Zi Chew.
The entity is named TikTok USDS Joint Venture LLC, the memo said.
As part of the joint venture, Chew said in the memo, which was obtained by CNBC, that the company has signed agreements with the three managing investors: Oracle, Silver Lake, and Abu Dhabi-based MGX. Chew said that the deal's "closing date" is Jan. 22.
Under national security law, which the Supreme Court upheld in January, China-based ByteDance was required to divest TikTok's U.S. operations or face an effective ban in the country. In September, President Donald Trump signed an executive order approving a proposed deal that would keep TikTok operational in the U.S. by meeting the requirements of a law originally signed by former President Joe Biden.
Chew noted that the new TikTok joint venture would be "majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans' data and U.S. national security."
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