US, China agree to spin off TikTok's US operation, White House official confirms

The U.S. and China on Thursday signed off on a TikTok U.S. spin-off deal that will allow the short-form video app to continue to operate in the U.S. by addressing concerns about its Chinese parent company, ByteDance, a White House official confirmed to FOX Business.

The new TikTok U.S. joint venture, featuring a mostly American investor group led by Oracle and Silver Lake, was revealed last month when TikTok CEO Shou Chew told employees in an internal memo that the company had signed agreements to create the new entity. 

He said in the memo that the new entity would address U.S. lawmakers' concerns about the Chinese government's ability to use its influence over ByteDance to harness the platform for propaganda or to access the data of the platform's 170 million American users.

Under the terms of the agreement, ByteDance will have a nearly 20% stake in the new U.S. entity, while 15% stakes in the venture will go to Oracle, Silver Lake and MGX. The new entity is expected to be governed by a board with a majority of its directors from the U.S.

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