The US government has approved a framework agreement for the sale of TikTok, under which the app will be purchased by a group of American investors, with some ownership retained by China-based owner ByteDance. What is particularly noteworthy is that the algorithm that controls the user experience on TikTok will remain under the control of ByteDance. Investors in the new US entity will hold about 80% of the shares, and the board will be dominated by Americans, with one member selected by the US government.
There have been reports that the new TikTok sale deal could include Oracle as a major partner. The company has long been in contact with TikTok in the US, supporting its data separation program. The final deal could see the platform purchased by an American consortium, which will be built with the participation of Oracle, BlackRock, and Andreesen Horowitz.
For users, the app itself will likely remain unchanged: they will continue to use TikTok’s endless video distribution system without any disruption. Trump, who previously called for a ban on TikTok, has now reversed his position and is allowing the app to continue operating in the US.
Recall that the law passed in April 2024 would have banned TikTok in the US if China’s ByteDance had not sold its American stake. The US Department of Justice says that TikTok “poses a serious threat to national security” due to its access to American users’ data.
