According to sources familiar with the discussions, White House-led negotiations on the future of TikTok are moving towards a plan where the major non-Chinese investors in parent company ByteDance would increase their stakes and acquire the U.S. operations of the popular short video app. The plan involves creating a separate U.S. entity for TikTok and reducing Chinese ownership in the new business to comply with U.S. regulations, thereby averting a potential ban on the app. Susquehanna International Group, General Atlantic, and KKR are leading the discussions with the White House on this proposed plan. Oracle would retain U.S. user data under the plan to ensure it is secure and inaccessible from China. The fate of TikTok has been uncertain since a law was enacted in January, requiring ByteDance to sell the app to avoid national security concerns. The White House has been deeply involved in the negotiations, with President Trump expressing a desire to keep TikTok operational in the U.S. The talks have gained significant attention, with investors working to find a solution that satisfies all parties involved.
Trump recently extended the enforcement of the TikTok ban by 75 days. He mentioned being in talks with four different groups regarding a potential deal for the app, but did not disclose their identities. Other interested parties in acquiring TikTok include a group led by billionaire Frank McCourt and another involving YouTube star Mr. Beast (Jimmy Donaldson). Reports indicated that the administration was considering a plan involving Oracle and existing ByteDance investors to manage TikTok’s operations, with Oracle overseeing data collection and software updates. This proposed deal would allow ByteDance to retain a stake in the company. Oracle currently provides the infrastructure for TikTok as per an agreement reached during Trump’s first term.
