TikTok’s U.S. business is set to come under the control of a new investor consortium led by Oracle, Silver Lake and Andreessen Horowitz, according to reports citing people familiar with the matter. The framework is being finalised between the United States and China.
Under the plan, a new company will be created to run TikTok in the United States, with U.S. investors owning about 80 percent of the stake, while Chinese shareholders will retain the remaining share. The board of the company will be dominated by American members, and one seat will be designated by the U.S. government.
The report also noted that current users will eventually be required to shift to a new version of the app, which TikTok has already built and is testing. Earlier this year, it was reported that TikTok was preparing to launch a standalone application for U.S. users, designed to run on a separate algorithm and data system from its global platform.
Oracle is expected to handle U.S. user data at its facilities in Texas. However, sources indicated that negotiations between Washington and Beijing are ongoing, and the final terms of the deal could still change.
TikTok and the investor companies have not yet responded to requests for comment.
In a related development, U.S. President Donald Trump signed an executive order on Tuesday to delay enforcement of a 2024 law that required TikTok’s Chinese ownership to be divested. The new deadline has been pushed to December 16. On the same day, Trump also confirmed that an agreement had been reached between the United States and China to allow TikTok to continue its operations in the country.
The outcome of this deal is being closely watched worldwide, as it could serve as a model for how governments balance technology ownership, data security and cross-border business in the digital economy.
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