TikTok’s US operations are set to be acquired by a consortium led by Oracle Corporation, alongside Andreessen Horowitz and Silver Lake Management LLC, under a framework agreement expected to be finalized following discussions between US President Donald Trump and Chinese President Xi Jinping this week.
According to officials familiar with the negotiations, the agreement would establish a US-based version of TikTok, reducing ByteDance Ltd.’s ownership stake in the platform’s American business to below 20% in order to comply with the 2024 US national security law mandating divestiture by Chinese owners.
The deal also provides for existing US investors to hold approximately 30% of the new entity, while new external investors will control 50%.
The proposed structure ensures that ByteDance retains a minority position, while TikTok’s algorithms will be licensed under strict US oversight.
Oracle is expected to continue providing cloud services to TikTok under the arrangement, expanding its multibillion-dollar Project Texas hosting agreement, which already secures American user data domestically.
TikTok’s US operations are valued between $35 billion and $40 billion. Oracle’s shares rose 5.9% in New York trading before closing lower
The development comes after more than a year of negotiations complicated by broader US-China trade tensions. Trump confirmed on Tuesday that he had reached “a deal on TikTok” but noted final details would be confirmed in his upcoming call with Xi.
The White House has extended ByteDance’s deadline to complete a qualified divestiture until December 16, 2025, allowing TikTok to continue operations while the transaction is finalized.
Analysts note that the deal, if completed, would preserve TikTok’s presence in the US market while removing ByteDance’s operational control, a key condition under the law signed last year. Failure to meet the December deadline would trigger a nationwide ban on the platform.
Treasury Secretary Scott Bessent said the agreement included national security safeguards while also balancing Chinese interests, describing it as consistent with earlier commercial terms that stalled earlier this year due to trade disputes.
The final structure of shareholding among Oracle, Andreessen Horowitz, and Silver Lake has not yet been disclosed.
