TikTok’s American business is poised for a major overhaul, with a consortium led by Oracle, Silver Lake, and Andreessen Horowitz (a16z) expected to assume control, the Wall Street Journal reported on Tuesday. The development signals progress in talks between Washington and Beijing over the platform’s future in the U.S.
As per the proposed arrangement, a new company will be formed to operate TikTok in America. U.S. investors will own close to 80 per cent of the entity, while Chinese stakeholders will retain a minority holding. The board will be dominated by American directors, including a government-appointed member to oversee compliance.
Fresh app for U.S. users
A key part of the plan is the creation of a standalone app exclusively for American users. According to the Washington Post, TikTok has already developed and begun testing this app, which will run on a separate algorithm and data framework from the global version. Reuters had earlier revealed that such a project was in the works, designed to address Washington’s concerns around data security and foreign influence.
The WSJ report added that Oracle would take responsibility for housing and managing U.S. user data within its Texas facilities. This measure is aimed at assuaging fears over data sovereignty and safeguarding the personal information of American users. Negotiations are still underway, and both governments are working out the finer details, leaving room for last-minute adjustments to the agreement.
Deadline extended
In a parallel move, U.S. President Donald Trump signed an executive order on Tuesday postponing the enforcement of a 2024 law that requires TikTok’s parent company, ByteDance, to divest its American business. The compliance deadline has been extended until December 16. Trump also confirmed that an agreement with China had been reached to ensure TikTok continues operating in the U.S.
Neither TikTok nor representatives from Oracle, Silver Lake, or a16z have stated the matter.