The deal is a milestone for the short video app used regularly by more than 170 million Americans after years of battles that began in August 2020, when US President Donald Trump first tried unsuccessfully to ban the app over US national security concerns.
The details of the deal are in line with those outlined in September, when Trump delayed until January 20 enforcement of the law that bans the app unless its Chinese owners sell it amid efforts to extract TikTok’s US assets from the global platform. He also declared the deal met the terms of the divestiture requirements under a 2024 law. The new US company will be valued at around $14 billion, Vice President JD Vance said in September. That was below analysts’ estimates and the final figure was not made public on Thursday.
Under the agreement, American and global investors including cloud computing giant Oracle, private equity group, Silver Lake and Abu Dhabi-based, MGX will hold an 80.1% stake in the new TikTok USDS Joint Venture LLC, while ByteDance will retain 19.9%.
–Reuters–
