TikTok Finalizes Spinoff of American Operations: Key Ownership Details Unveiled
In a significant development, TikTok has reached an agreement to divest its American operations, a move that aims to secure the app’s ongoing availability in the United States. This transition caps off a lengthy period of regulatory uncertainty surrounding the popular social media platform.
Newly available data reveals that nearly half of TikTok’s assets will be redistributed among three key stakeholders: Oracle, Silver Lake, and MGX. Each of these companies will hold approximately 15% of the newly established entity. Notably, MGX, which is owned by the state of Abu Dhabi, is not an American firm, raising questions about international ownership dynamics. The remaining assets will be retained by TikTok’s parent company, ByteDance, which will also maintain a direct stake of around 20%.
The governance of U.S. operations will be overseen by a board of directors consisting of seven members, the majority of whom will be American citizens. As part of the agreement, Oracle, led by CEO Larry Ellison, will manage the storage of U.S. user data. Ellison, known for his connections to former President Trump, has been attempting to acquire TikTok since 2020. Silver Lake, another pivotal player in the spinoff, has established ties with Trump affiliates, including Michael Dell and Jared Kushner.
TikTok CEO Shou Chew communicated to employees that the expected completion date for the deal is January 22. In a recent memo, he emphasized the company’s commitment to its user base: “With these agreements in place, our focus must stay where it’s always been — firmly on delivering for our users, creators, businesses and the global TikTok community.”
This agreement marks a turning point in the ongoing saga following past executive orders aimed at forcing a sale of the app to avoid a potential ban, initiated under the Trump administration over a year ago.
Key Points:
– TikTok agrees to spin off U.S. operations to secure app availability.
– Nearly 50% of assets divided among Oracle, Silver Lake, and state-owned MGX.
– ByteDance retains 20% ownership, and a majority-American board will oversee operations.
– Oracle will manage the storage of U.S. user data.
– Anticipated completion of the deal is set for January 22, following extensive regulatory challenges.
