TikTok Signs Deal to End US Ban Over Ownership
- A joint venture with oracle, Silver Lake, and MGX secures TikTok's future in the United States, addressing national security concerns.
- On September 26, 2024, TikTok announced a joint venture agreement with investors that aims to maintain its operations in the United States and circumvent a threatened ban stemming...
- According to an internal memo shared with employees and cited by Bloomberg and Axios, TikTok CEO Shou Chew informed staff that the social media company and its parent...
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TikTok Avoids US Ban with New Ownership Deal
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A joint venture with oracle, Silver Lake, and MGX secures TikTok’s future in the United States, addressing national security concerns.
The Deal: Averting a US Ban
On September 26, 2024, TikTok announced a joint venture agreement with investors that aims to maintain its operations in the United States and circumvent a threatened ban stemming from concerns about its Chinese ownership,as reported by multiple US media outlets.
According to an internal memo shared with employees and cited by Bloomberg and Axios, TikTok CEO Shou Chew informed staff that the social media company and its parent company, ByteDance, had agreed to the new entity. Key investors include Oracle, Silver Lake, and Abu Dhabi-based MGX.
This agreement represents a meaningful shift in TikTok’s US strategy, designed to address national security concerns raised by US lawmakers.
Key Players and Ownership Structure
The new ownership structure is designed to address US concerns about data access and potential influence by the Chinese government. Oracle’s executive chairman and founder, Larry Ellison, a long-time ally of former US President Donald Trump, plays a central role in the deal.
Chew’s memo detailed the ownership breakdown: approximately one-third of the US venture will be held by existing ByteDance investors, while ByteDance itself will retain nearly 20 percent – the maximum permitted ownership under the agreement. The remaining stake will be distributed among the new investors: Oracle, Silver Lake, and MGX.
| Investor | Approximate Ownership |
|---|---|
| Existing ByteDance Investors | 33% |
| bytedance | ~20% |
| Oracle | ~17% |
| Silver Lake | ~15% |
| MGX | ~15% |
This structure aims to create a US-controlled entity that can operate independently from ByteDance, mitigating concerns about data security and censorship.
Background: The US-TikTok Dispute
The US government has expressed concerns about TikTok’s