TikTok signs deal to avoid US ban

TikTok has inked an agreement to sell off its American business to a group of investors in a deal that could ensure the short-form video app can continue operating in the U.S.

This is according to an internal memo sent to employees by CEO Shou Chew, and seen by several outlets including Reuters and The Associated Press (AP).

TikTok has signed agreements with three firms—Oracle, Silver Lake and MGX, an Emirati state-owned investment firm—to form a new U.S. joint venture. The companies will together own nearly half of the new entity, with 20 percent being held by TikTok’s Chinese parent ByteDance and 30 percent by existing ByteDance investors.

“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,” Chew wrote, per AP. “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.”

The agreement is expected to close on January 22.

This is a developing story. More to follow.