The United States and China have reached a final agreement to sell equity in TikTok's U.S. business rights, CBS and Politico reported on the 22nd local time, citing sources.
The two governments gave final approval to a deal to sell TikTok's U.S. institutional sector to a consortium that includes Oracle and private equity firm Silver Lake. The sources said the transaction is expected to be completed within this week.
This comes one day before the 23rd, the deadline set by the Donald Trump administration through an executive order for the sale of TikTok. The U.S. government initially set Jan. 19 last year as the deadline for the sale of TikTok, but President Trump extended the deadline several times, giving more time for sale negotiations.
Under the new governance structure in this agreement, ByteDance Ltd.'s equity in TikTok's U.S. subsidiary will be reduced to less than 20%.
Oracle, Silver Lake, and MGX, a state-owned artificial intelligence (AI) investment company in the United Arab Emirates (UAE), will each secure 15%, and Susquehanna, Dragoneer, and DFO, the family office of Michael Dell, will also participate as investors.
However, specific details on the sale price and the agreement related to the algorithm were not disclosed.
Earlier, Vice President JD Vance said in September last year that the value of TikTok's U.S. business unit was assessed at about $1.4 billion (about 2 trillion won).
Also, TikTok Chief Executive Officer (CEO) Shou Zi Chew noted in an internal memo last month that the newly established U.S. joint venture would operate as an independent entity with authority over data protection within the United States, algorithm security, content management, and software assurance.