TikTok Dealing to Remain in the U.S. with New Ownership Following Trump's Announcement
In a significant development, the U.S. operations of TikTok are set to transition under U.S.-controlled ownership, following the deal involving American companies Oracle, Silver Lake, and Andreessen Horowitz. These firms are expected to own 80% of a new U.S.-based TikTok entity, with Chinese shareholders retaining a reduced stake of approximately 19.9%.
The deal, which is still subject to ratification and confirmation, is a result of the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), passed in 2024. The agreement aims to alleviate U.S. national security concerns, such as data sovereignty, user privacy, content moderation, and algorithmic transparency.
President Trump has indicated his intention to speak with Chinese President Xi Jinping to finalize the agreement. In a move to provide more time for negotiations, Trump has extended enforcement deadlines for TikTok's divestment.
If finalized, the deal would prevent a TikTok ban in the U.S., preserving access for its millions of American users. Oversight, data control, and governance are expected to shift toward U.S. hands in the proposed deal. However, the app's algorithm, developed by ByteDance in China, may continue to have some license or continued involvement in the deal.
The deal allows TikTok to continue operating in the United States despite laws mandating its divestment or ban. The U.S. operations of TikTok will be placed under U.S.-controlled ownership, with companies such as Oracle, Silver Lake, and Andreessen Horowitz expected to be among those acquiring or controlling the majority of the U.S. entity.
The negotiations and the deal's final details are still being worked out, and confirmation is pending. The deal is a significant step in addressing U.S. national security concerns related to foreign-controlled applications, as the tech industry continues to evolve and face increasing scrutiny.
