TikTok: USA and China approve sale of US business
The years-long dispute over the sale of TikTok in the US appears to be nearing its conclusion.
According to multiple media reports, both the US government and China have approved the sale of TikTok's US operations. The buyer is an investor consortium with predominantly US backers, led by Oracle and Silver Lake. The transaction is expected to close this week.
A purchase price of up to 14 billion US dollars is conceivable.
The new ownership structure stipulates that TikTok's parent company, ByteDance, will hold less than 20 percent of its US business. Oracle, Silver Lake, and the UAE-based investment fund MGX will each hold approximately 15 percent. Other stakes are held by Susquehanna, Dragoneer, and Michael Dell's family holding company. No details regarding the purchase price have yet been released, but recent reports suggest a valuation of around 14 billion US dollars.
The deal meets the requirements of a 2024 US law that mandated that ByteDance spin off its US operations. A White House deadline expires on January 22. This move stems from security concerns regarding data usage and potential influence from the Chinese government.
Independent company with a focus on security
According to TikTok CEO Shou Chew, the new company will operate as an independent entity. It will be governed by a board of directors with a majority of American members, as well as dedicated structures for data protection, content moderation, and algorithm security. The latter point, in particular, had long been considered the biggest obstacle in the negotiations.
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