TikTok’s US Operations Set For Acquisition By Oracle, Andreessen and Silver Lake: Report

TikTok’s American operations are set to be acquired by a consortium including Oracle Corp, Andreessen Horowitz and Silver Lake Management LLC under a framework agreement announced after two days of talks in Madrid, Bloomberg reported.

The tentative deal, expected to be discussed later this week by US President Donald Trump and Chinese President Xi Jinping, would create a US-based version of the popular video app with all three firms holding stakes.

ByteDance Ltd., the Beijing-based parent company of TikTok, would cut its stake to below 20 per cent to comply with a 2024 US national security law requiring divestment or a ban.

If completed, the agreement would allow TikTok to continue operating in the American market and help ease one of the ongoing disputes in US-China relations.

Oracle will remain central to TikTok’s US business by continuing to provide cloud services through Project Texas, a multi-billion-dollar partnership to host user data domestically.

Oracle shares jumped as much as 5.9 per cent in New York before paring gains, with the stock already up 84 per cent this year on the back of its cloud growth.

Trump on Tuesday granted ByteDance another extension to divest TikTok’s US operations, pushing the deadline to 16 December.

It is the fourth reprieve since January, despite the law allowing only one 90-day extension.

The President, who credited TikTok with boosting his popularity among younger voters during his November re-election win, told reporters earlier that he had “a deal on TikTok” but did not name the companies involved.

The fate of TikTok’s algorithm remains unresolved.

ByteDance would reportedly license the recommendation software to the US entity.

The law bars ByteDance from playing any operational role once the sale is complete, including control of the algorithm.

However, details of each investor’s stake remain unclear.

US Treasury Secretary Scott Bessent told CNBC the terms were similar to those discussed earlier this year and expressed confidence that Trump and Xi would finalize the agreement this week.

“This deal wouldn’t be done without proper safeguards for US national security,” Bessent said.

“It seems as though we were also able to meet the Chinese interest," he added.

Until the deal closes, TikTok will remain available through Apple’s App Store and Google Play, with the extended deadline giving the Trump administration more time to ensure compliance with national security requirements and secure ownership by non-Chinese investors.

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Also Read: US, China Seal Framework Deal On TikTok Ownership Transfer: Report