TikTok deal timeline: From proposed ban in 2020 to ByteDance JV for US unit sale in 2026 — Here’s all you need to know
TikTok, the video sharing platform with nearly 200 million users in the USA, is preparing to start the process of transferring control of its unit in the USA in accordance with the agreement signed with the Trump administration.
TikTok and its Chinese parent company ByteDance closed on January 22 a long-awaited joint venture to transfer parts of TikTok US to new owners including US software giant Oracle Corp., private equity firm Silver Lake Management LLC and Abu Dhabi-based investment firm MGX, according to a Bloomberg report.
According to the agreement, ByteDance will lease a copy of its content algorithm to the US organization so that it can retrain the new algorithm on US user data.
The sale would result in years of back-and-forth wrangling that has threatened to shut down TikTok in America.
TikTok and ByteDance form joint venture to sell their US businesses
According to Reuters, the joint venture, known as TikTok USDS Joint Venture LLC, will secure US user data, applications and algorithms through data privacy and cybersecurity measures. He cited the company’s internal documents.
The Bloomberg report added that TikTok CEO Shou Chew will sit on TikTok US’s board of directors and continue to operate the app globally. Additionally, Chew’s second-in-command, Adam Presser, will take over as CEO in the US.
Under the deal, new investors will own 50% of the new TikTok US asset, while existing ByteDance investors will control 30.1% and parent ByteDance 19.9%, according to Bloomberg.
ByteDance is also expected to retain control of TikTok USA’s advertising division and its fast-growing e-commerce segment TikTok Shop.
Donald Trump celebrates TikTok deal success
On January 23, Donald Trump thanked his Chinese counterpart Xi Jinping hours after the joint venture was announced, writing on Truth Social: “I’m so glad I helped save TikTok! It will now belong to a group of Great American Patriots and Investors, the World’s Greatest, and will be an important Voice. I also want to thank Chinese President Xi for working with us and ultimately approving the Agreement. He could have gone the other way but he didn’t and it is appreciated. His decision.”
Noting that TikTok was responsible for securing young people’s votes in the 2024 US Presidential elections, among other things, Donald Trump also thanked Vice President JD Vance and others in his administration for helping push the deal to the finish line.
