A consortium of U.S. investors, including Oracle, Silver Lake, and Andreessen Horowitz, is poised to take control of TikTok’s American operations under a structure nearing completion between Washington and Beijing, according to the Wall Street Journal.
Citing sources familiar with the negotiations, the Journal reported that a newly established entity will oversee TikTok, with U.S. stakeholders holding about 80% ownership while Chinese investors retain the remainder.
The governance of the company would be largely American, featuring a board dominated by U.S. representatives and including one member appointed by the U.S. government, the report added.
Current TikTok users will reportedly be invited to migrate to a dedicated American version of the app that is now undergoing testing, as covered by the Washington Post.
In July, it surfaced that TikTok was developing a separate platform for the U.S. market, featuring distinct algorithms and data infrastructure from its international counterpart.
Oracle is set to manage user information at its Texas-based data centers, the Wall Street Journal noted. However, sources indicated that the specifics of the proposed agreement are still in flux as both countries continue discussions.
On Tuesday, President Donald Trump issued an executive order postponing the implementation of a 2024 mandate that would require TikTok to divest Chinese assets, extending the deadline to December 16. Earlier that day, President Trump also revealed that Washington and Beijing had reached a preliminary accord to allow TikTok to continue operating in the United States.
This is not merely a sale but a comprehensive restructuring. U.S. users will be required to download a new version of the app, visually indistinguishable from the current TikTok, yet operating solely on American servers with U.S.-managed algorithms. Under the arrangement, ByteDance will license its core technology but relinquish operational control of the platform in the United States. Additionally, the outcome ensures TikTok’s continued presence, allows creators to retain their audiences, and grants Washington authority over user data.
