TikTok signs deal to sell to American companies, Oracle and Silver Lake included
These investors will be taking over the US operations of the hit social media platform from next month.
While it tried to hold out against enforcement of a ban, social media giant TikTok is officially selling, though it'll just be handing over the US operations of its video platform to a consortium of buyers, including some familiar names.
Silver Lake and Oracle are named, and The Hollywood Reporter also has it that MGX AKA Abu Dhabi's state investment firm is also joining the consortium. These main managing investors will collectively own 45% of the company. Another 5% of the company will be owned by other new investors. 30.1% is owned by affiliates of existing investors of ByteDance, with 19.9% being held by ByteDance itself.
"I want to take this opportunity to thank you for your continued dedication and tireless work. Your efforts keep us operating at the highest level and will ensure that TikTok continues to grow and thrive in the U.S. and around the world," TikTok CEO Shou Chew wrote in a memo to staff. "With these agreements in place, our focus must stay where it's always been—firmly on delivering for our users, creators, businesses and the global TikTok community."
TikTok has survived its ban, then, but not without severe cost. Once again, we're seeing Oracle and Silver Lake in relation to big entertainment buyouts. Oracle founder Larry Ellison helped his son take over Paramount, and Silver Lake is one of three big names taking over EA for $55 billion.
