Washington, D.C. — The United States and China are close to finalizing a landmark agreement that would overhaul TikTok’s U.S. operations, placing control largely in American hands amid long-standing national security concerns. The deal would see a consortium of U.S. investors assume approximately 80% ownership of a newly formed U.S. entity, with Chinese shareholders retaining under 20%.
As part of the proposed framework, Oracle, Silver Lake, and venture capital firm Andreessen Horowitz are expected to be the primary stakeholders in the restructured company. Oracle would also assume responsibility for storing U.S. user data at its Texas facilities and overseeing data security. Meanwhile, key components — including the recommendation algorithm — are to be licensed from ByteDance, TikTok’s parent company, but engineered and managed by a U.S.-based engineering team to minimize foreign influence.
President Donald Trump has pushed back enforcement of a law requiring divestment of Chinese ownership until December 16, giving all sides additional time to sign off on the new ownership structure. The delay aims to avoid disruption to TikTok’s services in the United States while negotiations are wrapped up.
The envisioned governance model calls for an American-dominated board of directors for the new entity, with at least one member appointed by the U.S. government. Existing ByteDance investors would be part of the ownership mix, ensuring financial continuity, though real control is intended to shift effectively to U.S. interests.
Negotiations have proceeded in recent weeks, including discussions in Madrid, and officials say much of the commercial structure has been agreed upon, though some technical and legal details remain under negotiation. Among the unresolved issues is exactly how the algorithm licensing will operate, and how oversight mechanisms will be arranged to satisfy U.S. legal requirements.
Critics of the proposal caution about whether the licensing structure for ByteDance’s technology will truly insulate U.S. operations and protect national security. Others view the move as a necessary compromise to preserve TikTok’s presence in the U.S. without risking a ban.
If approved by relevant regulatory authorities and Congress, the agreement could avert the shutdown of TikTok in the United States and set a precedent for how foreign-origin apps are treated under national security law.