American Firms to Oversee TikTok US Operations Under Deal

Oracle Leads US Investor Group to Secure TikTok’s Future in AmericaA proposal is ready to keep TikTok operating in the United States. Major American investors will take over the app’s US operations. This deal aims to resolve a significant dispute between the US and China.President Donald Trump will discuss the framework with China’s Xi Jinping on Friday. The plan involves Oracle Corp., Andreessen Horowitz, and Silver Lake Management LLC. This follows intense negotiations between senior officials from both nations.

Details of the Proposed TikTok Ownership Structure

The framework proposes creating a new, US-based version of TikTok. American investors would hold a majority stake in this new venture. According to Bloomberg, ByteDance would retain less than 20 percent ownership.New outside investors would own approximately 50 percent of the business. Existing US investors in ByteDance would keep around 30 percent. This structure complies with a US national security law passed in 2024. That law required TikTok to hand over its US operations to avoid a ban.Oracle will handle cloud services for TikTok in the US under the deal. This aligns with their existing “Project Texas” agreement. Oracle already hosts TikTok’s global user data in a multibillion-dollar partnership.

Strategic Implications for US-China Relations

This agreement could ease a major technological flashpoint. It allows TikTok to continue serving its massive American user base. The deal also demonstrates a pragmatic approach to complex cross-border data issues.For the US, it addresses longstanding national security concerns. American firms will now control critical operations and data. The outcome is seen as a significant diplomatic achievement for the Trump administration.

Steelers Coach Mike Tomlin Shares Key Injury Update on Alex Highsmith

The proposed TikTok ownership deal represents a critical compromise. It safeguards national security while preserving a popular platform. This arrangement could set a new precedent for how global tech firms operate across borders.

Info at your fingertips

Which American companies are involved in the TikTok deal?

Oracle, Andreessen Horowitz, and Silver Lake Management LLC are the primary US investors. Oracle will specifically manage TikTok’s US cloud services and data hosting.

How much of TikTok will ByteDance still own?

ByteDance, TikTok’s Chinese developer, will retain a minority stake of less than 20%. The majority will be controlled by a consortium of new and existing American investors.

Why does the US government want this deal?

The deal complies with a 2024 US national security law. It aims to mitigate potential data privacy risks by placing TikTok’s US operations under American control.

What is Project Texas?

Project Texas is an existing multibillion-dollar agreement where Oracle hosts TikTok’s user data outside of China. This new deal expands that partnership significantly.