TikTok has signed a joint venture deal to maintain US operations and avoid a ban.
TikTok has signed a joint venture deal to maintain US operations and avoid a ban.
TikTok today said it had signed a joint venture deal with investors that would allow the company to maintain operations in the United States and avoid the threat of a ban over its Chinese ownership, US media reported.
According to an internal memo cited by Bloomberg and Axios, TikTok chiefexecutive Shou Chew told employees the social media company and its Chinese owner ByteDance had agreed to the new entity, with Oracle, Silver Lake and Abu Dhabi-based MGX as major investors.
The deal largely confirms a September announcement by the White House that said the new venture would meet the requirements of a 2024 law that threatened to ban the wildly popular app in the United States if ByteDance remained TikTok’s majority owner.
