A memo seen by Reuters from the CEO of TikTok reveals that the Chinese company ByteDance, which owns TikTok, has signed an agreement to sell its American operations to a joint venture controlled by American investors.
The transaction is expected to be completed by January 22nd.
For years, the U.S. government has been urging ByteDance, TikTok’s Chinese parent company, to divest its American business due to national security concerns.
According to the memo, Oracle, Silver Lake, and Abu Dhabi-based Mubadala Investment Company will collectively hold a 45% stake in the new entity.
ByteDance has not immediately responded to Reuters’ request for comment.