Framework moves TikTok US operations to Oracle-led consortium (Silver Lake, a16z); ByteDance <20%
Trump delays divest-or-ban enforcement to December 16, 2025, extending negotiations
Oracle to host US user data; US engineers oversee recommendation algorithm
Deal raises valuation questions, Beijing approvals, and US regulatory vetting concerns
A framework agreement being finalised by US and Chinese officials would transfer TikTok’s US operations to a consortium that includes Oracle, Silver Lake and Andreessen Horowitz, Wall Street Journal reported.
The agreement will reportedly create a new US-based company that US investors would control while ByteDance’s stake falls below the 20% threshold set by US law. President Donald Trump has delayed enforcement of the divest-or-ban deadline to December 16, 2025 as negotiations continue.
Under the proposed structure, current US investors and the new consortium would hold the bulk of the economic interest and seats on a US-dominated board; ByteDance would be pared down to a minority stake to comply with the 2024 security law that otherwise requires divestment or a ban.
A US app mirroring TikTok’s recommendation engine is reportedly being tested so American users can be migrated to a split platform if the deal is finalised.
Data, Cloud & Algorithm
Oracle is expected to continue hosting US user data, part of an expanded “Project Texas”-style arrangement, and US engineers would oversee the algorithm for American users.
Beijing has indicated it would license the underlying Chinese technology to the US unit under the framework, a concession that leaves open questions about control and safeguards.
The administration’s extension buys negotiating time: the White House postponed the enforcement deadline (the fourth extension since the law passed) so negotiators can finalise commercial and national-security safeguards. Officials, including treasury secretary Scott Bessent, have said talks have produced a workable outline but cautioned that details and approvals remain to be worked out.
Valuation & Investors
US investors have previously valued TikTok’s American business in the low tens of billions; with the consortium approach and rising market multiples for AI and ad platforms, estimates have floated much higher in private reports.
Shares of some potential partners, notably Oracle, rallied on the reports as markets grasped the commercial upside of a US-based TikTok and continued cloud revenue.
Analysts and national-security officials note multiple unresolved items: precise ownership stakes, enforceable guarantees that ByteDance will have no operational control, vetting by US regulators and possible pushback in Beijing.
Legal experts have also questioned whether multiple deadline extensions are consistent with the statute’s limits. Any final deal will need clear technical and governance safeguards to pass muster in Washington and satisfy Beijing’s export and IP rules.
