WASHINGTON, D.C.—Senior White House officials have announced a preliminary deal for an American investor group to acquire TikTok’s U.S. operations, a move aimed at addressing national security concerns and preventing a potential ban on the popular social media platform.
The agreement, which has been in development for months, will establish a new U.S.-based joint venture with majority American ownership. Oracle, a U.S. tech firm, will serve as the security partner, controlling and monitoring TikTok’s core algorithm and storing all U.S. user data on its domestic servers.
President Donald Trump, who is expected to sign an executive order formalizing the deal this week and delaying a ban for 120 days, indicated that the investor group includes prominent figures such as Oracle co-founder Larry Ellison and media mogul Rupert Murdoch.
The transaction, valued at “many billions of dollars,” will see the China-based parent company, ByteDance, retain a stake of no more than 20% in the new joint venture. Americans will hold six of the seven seats on the board of directors for TikTok’s U.S. operations. According to White House Press Secretary Karoline Leavitt, the deal ensures that American users will not need to download a new app and will still be able to view videos from users in other countries.
This deal marks a significant development in a long-standing dispute over national security concerns related to Chinese ownership of the app. The agreement requires final approval from Chinese leaders and will still face a review of antitrust laws.
