TikTok's American proposal has been signed, with ByteDance continuing to own TikTok's algorithm intellectual property rights.

On December 18th local time, TikTok CEO Zhang Yiming issued an internal letter, updating the progress of TikTok's business in the United States. The letter stated that ByteDance and TikTok have signed agreements with three investors to establish a new TikTok US joint venture company. It is understood that ByteDance will continue to own the intellectual property rights of the TikTok algorithm, authorize the new joint venture company to use it, and charge licensing fees to the latter. E-commerce, advertising, market operations and other commercial activities are the main sources of revenue for TikTok, which will still be managed by entities controlled by ByteDance's wholly-owned TikTok US company. The data, content security and other businesses managed by the new joint venture company are non-profit in nature and have high operating costs. In order to ensure the operation of the joint venture company, there will be commercially reasonable revenue sharing arrangements between the parties mentioned above. In addition to the business allocation between the two companies, the board seats and equity structure of the TikTok US Data Security Joint Venture Limited Liability Company are as disclosed before. The internal letter from TikTok shows that ByteDance and TikTok have signed agreements with three investors, including Oracle, Silver Lake and MGX. The combined new investors will hold 45% of the shares of the new joint venture company; ByteDance and its affiliates will hold 30.1%, and ByteDance will retain 19.9%. ByteDance will still be the largest single shareholder of the new joint venture company. In addition, the majority of the shares of the new joint venture company will be held by American investors, and it will be managed by a new seven-member board of directors.