TikTok's Chinese owner, ByteDance, has signed binding agreements to hand control of its US operations to a group of investors to avoid the US ban.
The deal is a milestone for the app used regularly by more than 170 million Americans after years of battles that began in August 2020, when President Donald Trump first tried unsuccessfully to ban the app over US national security concerns.
Financial terms of the deal, announced in an internal memo by TikTok (US) seen by Reuters, were not disclosed.
Other details of the deal are in line with those outlined in September, when Trump delayed until January 20th enforcement of the law that bans the app unless its Chinese owners sell it amid efforts to extract TikTok's US assets from the global platform. He also declared the deal met the terms of the divestiture requirements under a 2024 law.
The new US company will be valued at around $14 billion, Vice President JD Vance said in September. That was below analysts' estimates, and the final figure was not made public when the deal was announced on Thursday.
Under the agreement, American and global investors - including cloud computing giant Oracle, private equity group Silver Lake and Abu Dhabi-based MGX - will hold an 80.1 per cent stake in the new TikTok USDS Joint Venture LLC, while ByteDance will retain 19.9 per cent.
Oracle shares rose nearly 6 per cent in premarket trading on Friday.
