TikTok signs deal to spin off US operations

A few days after the latest TikTok ban extension deadline passed, it seems we may finally have an answer to whether the sale is, in fact, going through.

According to multiple reports, TikTok CEO Shou Zi Chew informed employees on Thursday in a memo that as of next month, the company’s US operations will operate under a new joint venture, TikTok USDS Joint Venture LLC, after the company signed agreements with Oracle, Silver Lake, and MGX. The reported closing date is January 22.

In the memo, Chew wrote that the joint venture will be “majority owned by American investors, governed by a new seven-member majority-American board of directors, and subject to terms that protect Americans’ data and US national security.” ByteDance will retain about 20% ownership.

Information around whether the Chinese government had signed off on the deal—an essential step in making it official—was not included in the memo, nor was it confirmed if a US-only version of the app would follow. Chew wrote that he will “continue to update [employees] on the process and other details” of the deal between now and the expected closing date.

Is this the end to a yearslong “will they, won’t they” saga in executing the divest-or-ban law, or just another blip in the timeline? We’ll likely find out in the new year.