TikTok U.S. Deal Approved — Oracle-Led Consortium to Run U.S. Operations
How the deal works
Under the agreement, TikTok’s U.S. operations will be managed by a joint venture majority-owned and controlled by U.S. investors. Oracle will play a central role, providing cloud infrastructure and acting as a security monitor to ensure U.S. user data is stored on American servers and that the recommendation algorithm is retrained under U.S.-approved processes.
The investor group — including Oracle, Silver Lake Management, Andreessen Horowitz, and Susquehanna International — is expected to hold roughly 80% of the new company. ByteDance will retain a stake below 20% but will no longer control user data, content moderation, or the core recommendation algorithms. A seven-member board, composed of six American members and one ByteDance representative, will oversee the entity.
What this means for users
For everyday users, the app will remain accessible and creators can continue posting content and monetizing their channels. Businesses will still be able to advertise on the platform. At some point, U.S. users may be asked to download a U.S.-specific version of TikTok that offers largely the same experience while operating under American control. The global TikTok app will continue under ByteDance’s control outside the United States.
Deal valuation and timeline
The agreement values TikTok’s U.S. business at about $14 billion and must be finalized within 120 days. President Trump described the deal as a victory for national security and American business, noting participation from high-profile U.S. executives.
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Outstanding questions
While the U.S. investor group gains control, ByteDance’s reduced but ongoing role—especially in e-commerce and advertising operations—has raised concerns in some quarters. Congressional review is expected in the coming weeks to ensure full compliance with the divestment law. Reports indicate China’s approval is still required, and Beijing’s final decision remains to be seen.
After extended negotiations, court battles and deadlines, the deal represents a critical moment in how the United States addresses foreign ownership of major digital platforms. Whether this approach proves durable or prompts further legal and political scrutiny remains to be determined.
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