By Clare Duffy, CNN
New York (CNN) — TikTok has signed the deal backed by President Donald Trump to sell its US assets to a group of American investors, CEO Shou Chew told employees in a memo Thursday.
Although the transaction is not yet complete, the move brings TikTok one step closer to securing its long-term future in the United States. It comes after a law passed last year required that the US version of the app be spun off from its parent company, ByteDance, or be banned in the United States. Trump repeatedly delayed enforcement of the law as he pursued a deal to transfer control of the popular app to American ownership.
“We have signed agreements with investors regarding a new TikTok U.S. joint venture, enabling over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community,” Chew said in his memo, which was obtained by CNN.
Axios first reported the agreement.
The Trump administration said in September that it had reached a deal with China to transfer control of TikTok’s US operations to a group of mostly American investors. The president signed an executive order stating that the deal constitutes a qualified divestiture and delaying enforcement of the ban-or-sale law for 120 days to allow for the transaction’s closure.
Chew said in his memo that there is more work to be done before the deal is finalized, but the parties are moving toward a close by January 22, 2026. ByteDance and TikTok both agreed to the terms of the deal, he said.
The US law, which technically went into effect in January, bans TikTok unless ByteDance divests approximately 80% of its US assets to non-Chinese investors.
Under the agreement, the US TikTok app will be controlled by a new joint venture, 50% of which will be owned by a consortium of investors comprised of tech company Oracle, private equity firm Silver Lake and Emirati-backed investment firm MGX. Just over 30% of the joint venture will be held by “affiliates of certain existing investors in ByteDance” and 19.9% will be retained by ByteDance, according to Chew’s memo.
This is a developing story. It will be updated.
The-CNN-Wire
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