TikTok, owned by Chinese parent company ByteDance, is edging closer to a major ownership shakeup in the United States after years of political tension and legal disputes.
President Trump confirmed last week that Chinese President Xi Jinping had approved a deal allowing a U.S. consortium to take majority control of TikTok’s U.S. operations. ByteDance has pledged to ensure that the app remains available to American users.
Under the proposed framework, Oracle, Silver Lake, and Andreessen Horowitz are expected to oversee TikTok’s U.S. operations, collectively holding an 80% stake. Chinese stakeholders would retain the remaining shares, with the new entity’s board dominated by U.S. members and one seat reserved for a U.S. government appointee.
Oracle, already providing cloud services for TikTok, is likely to handle security and safety measures. The company would replicate and retrain a U.S.-based version of the algorithm leased from ByteDance, while ByteDance would be excluded from U.S. user data and algorithmic oversight.
High-profile figures like Rupert Murdoch, Larry Ellison, and Michael Dell have also been mentioned as potential players in the consortium. Competing bids had come from groups including Project Liberty’s “People’s Bid” and the American Investor Consortium, alongside interest from major firms such as Microsoft, Amazon, and Walmart.
Related: Trump Says Murdochs Likely to Join TikTok Deal as U.S. Spinoff Nears
Reports suggest that when the deal closes, the current TikTok app will be phased out in the U.S., requiring users to transition to a new platform, though details about its features remain unclear.
The move follows years of back-and-forth between TikTok and U.S. administrations. Trump’s original 2020 executive order sought to ban the app, citing national security risks. While courts delayed the order, subsequent legislation under the Biden administration reignited pressure on ByteDance. TikTok countered with lawsuits claiming its First Amendment rights were being violated.
Now, with a potential $60 billion valuation for the U.S. business at stake, TikTok’s American future may soon be defined by a new wave of U.S. investors and a security framework designed to ease Washington’s concerns.
