The United States and China have reached a final agreement to sell equity in the U.S. business rights of the video platform "TikTok," CBS and Politico reported on the 22nd, citing sources.
That day, TikTok said a limited liability company (LLC) called the "TikTok U.S. Data Security (USDS) joint venture" had been established after separating the U.S. institutional sector.
Earlier, the two governments gave final approval to an agreement to sell TikTok's U.S. institutional sector to a consortium that includes Oracle and private equity firm Silver Lake. The transaction is expected to be completed within this week, the sources said.
The day came one day before the 23rd, the deadline for TikTok's sale set by the Donald Trump administration through an executive order. The U.S. government had initially set TikTok's sale deadline as Jan. 19 last year, but President Trump extended the deadline several times, giving more time for sale negotiations.
Under the new governance structure agreed to this time, the equity of parent company ByteDance Ltd. in TikTok's U.S. subsidiary will be reduced to 19.9%.
Oracle, Silver Lake, and MGX, a state-owned artificial intelligence (AI) investment firm of the United Arab Emirates (UAE), will each secure 15%, and Susquehanna, Dragoneer, and DFO, the family office of Michael Dell, will also join as investors.
The newly created U.S. joint venture will be run by a seven-member board on which Americans are the majority. Executives from Oracle, Silver Lake, MGX, and Susquehanna have been appointed as directors, and TikTok Chief Executive Officer Shou Chew will also sit on the board. Adam Presser, formerly TikTok's head of trust and safety, has been named CEO of the U.S. joint venture.
The joint venture will operate as an independent entity responsible for protecting U.S. user data, algorithm security, software assurance, and safety policies.
Specific sale amounts and details related to the algorithm were not disclosed, but Vice President JD Vance said last September that TikTok's U.S. business unit was valued at about $14 billion (about 20 trillion won).