US TikTok Deal Update: Oracle & Investors Take Control

TikTok, owned by China’s ByteDance, has been at the center of a four-year-long controversy in the U.S. over data privacy concerns. After multiple executive orders, temporary bans, and investor negotiations, significant progress has been made on a US-based ownership deal.

???? What’s Happening Now

President Donald Trump recently signed an executive order approving the sale of TikTok’s US operations to an American investor group. The deal could value TikTok US at $14 billion, with some estimates suggesting the valuation could surge to $60 billion under new management.

A consortium reportedly includes Oracle, Silver Lake, and Andreessen Horowitz, expected to hold an 80% stake, while ByteDance retains the remainder. The board will mostly consist of US members, with one appointed by the US government.

Oracle is anticipated to manage security and safety, replicate a US-based version of the algorithm, and ensure ByteDance has no access to US user data or influence over the algorithm. Reports indicate that the current TikTok app may eventually be discontinued, requiring users to transition to a new platform.

???? Key Players

• Oracle: Cloud services and algorithm security
• Larry Ellison: Oracle executive chairman
• Dell Technologies CEO Michael Dell: Potential operational involvement
• Rupert & Lachlan Murdoch: Likely investors in the consortium

Other notable contenders in the bidding process included Amazon, Microsoft, Roblox co-founder David Baszucki, MrBeast, and several high-profile tech and investment firms.

???? Background

The TikTok-US controversy began in August 2020, when Trump signed an executive order banning transactions with ByteDance. Legal battles ensued, including temporary injunctions allowing TikTok to continue operating. The Biden administration later signed legislation reinforcing oversight of Chinese-owned apps.

The current deal represents a compromise, with ByteDance retaining a minor stake but losing control over US data and algorithm operations.

FAQ

Q1: Who will own TikTok in the US?
A consortium of US investors, including Oracle, Silver Lake, and Andreessen Horowitz, holding 80% of shares.

Q2: Will ByteDance control TikTok US data?
No, ByteDance will not have access to US user data or influence over the algorithm.

Q3: Do US users need to switch apps?
Yes, Bloomberg reports suggest TikTok may be discontinued, requiring a transition to a new platform.

Q4: What role will Oracle play?
Oracle will handle security, cloud hosting, and replicate a US-based algorithm for the app.