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For TikTok to continue in US, these American firms will take over operations
The deal, if agreed upon by both Trump and Xi Jinping, would let TikTok continue operating in the US and solve a major flashpoint between both the countries.
A proposal is ready to keep popular Chinese video-sharing app TikTok in business in the United States – the company's US operations to be taken over by several big investors, including Oracle Corp., Andreessen Horowitz and private equity firm Silver Lake Management LLC, reported Bloomberg.
United States President Donald Trump will discuss the framework of this proposal with his Chinese counterpart Xi Jinping on Friday.
TikTok has long been a point of contention between the United States and China, among many others. The US had made it clear that for the app to function in the US, its operations will have to be taken over by American firms. This proposal was agreed upon by senior Chinese and US officials after two days of negotiations in Spain and was unveiled on Monday, September 15, the report added.
Also read: Donald Trump extends TikTok deal deadline until December 16
The framework proposes that a US-based version of TikTok be created by new American investors, Oracle, Andreessen and Silver Lake, who would also hold stakes in the new venture, Bloomberg reported citing people familiar with the matter.
Who will own how much in US' TikTok version
The American investors will enjoy a majority chunk of this new venture, leaving less than 20 per cent with TikTok’s developer ByteDance. Around 50 per cent of the new venture, TikTok’s US version, would be owned by new outside investors and Bytedance’s existing US investors will get to keep around 30 per cent of the business, the report said. This is in line with a US national security law passed in 2024 under the Biden administration that needed TikTok to hand over its operations to American investors to keep running in the US or face a ban there.
The deal, if agreed upon by both Donald Trump and Xi Jinping, would let TikTok continue operating in the US and solve a major flashpoint between both the countries.
Oracle will be tasked with handling the cloud services for TikTok in the US under the deal. It already hosts Tiktok’s user data in not just the US but other parts of the world as well under a multibillion-dollar deal dubbed ‘Project Texas’, making the American firm’s integration under the new deal seem natural.
However, how much of this new venture each of the American investors would own is not yet clear.
A White House official told Bloomberg that the details of the agreement will be shared by the US administration once the deal is finalised and till then, everything is speculation.
