Oracle, Silver Lake, and MGX Finalize Deal to Acquire TikTok U.S. Business: What You Need to Know
TikTok has finalized a deal to sell its U.S. business to three American investors, namely Oracle, Silver Lake, and MGX. This agreement ensures that the popular social video platform can continue its operations in the United States. The deal is set to be completed by January 22, as mentioned in an internal memo shared with The Associated Press. CEO Shou Zi Chew confirmed in the memo that ByteDance and TikTok have entered into binding agreements with the three investors.
The new TikTok U.S. joint venture will have a consortium of new investors, including Oracle, Silver Lake, and MGX, holding a 50% stake in the business, with each investor having a 15% share. Additionally, affiliates of existing ByteDance investors will hold 30.1% of the venture, while ByteDance will retain 19.9% ownership, as outlined in the memo.
In conclusion, TikTok has successfully secured a deal with American investors Oracle, Silver Lake, and MGX to sell its U.S. business, ensuring the platform's continued presence in the country. The joint venture structure will involve a consortium of new and existing investors, with Oracle, Silver Lake, and MGX holding significant stakes in the business.