TikTok U.S. Saved (For Now)
U.S. Reaches TikTok Deal: Oracle-led Buyer Group to Head New U.S. Entity
The clock keeps ticking for TikTok in the United States, but for now, a ban has been postponed. A framework agreement hammered out by U.S. and Chinese officials would create a U.S.-based version of TikTok, with roughly 80% ownership going to American entities including Oracle, Silver Lake Management, and Andreessen Horowitz. ByteDance, the Chinese parent company, would retain under 20%.
The action comes under pressure from a U.S. law passed in 2024, the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which requires apps like TikTok to divest if they have Chinese ownership, on national security grounds. Previous deadlines lapsed; enforcement has been delayed multiple times via executive orders.
Key Details of the Deal
-
Oracle is expected to host all U.S. user data in its Texas facilities.
-
A U.S.-based entity will run the app, governed by a board with a U.S. majority, including one government-appointed member.
-
Part of the plan is to build a version of TikTok for U.S. users using a licensed version of ByteDance’s algorithm. Engineers are reportedly testing this version.
“From what I’ve seen, this is the most detailed and plausible path forward so far,” said one industry analyst who asked not to be named. “But the algorithm is the crown jewel, and control over it will define how different this TikTok actually is.”
What’s Unresolved
Several sticking points remain. Beijing is insisting on maintaining certain “Chinese characteristics” or licensing deal terms around the algorithm. U.S. officials are focused on securing oversight and ensuring no access by Chinese authorities to user data.
Congress will also need to weigh in, after all, the law that requires divestment or a ban still stands. Any deal must satisfy national security scrutiny. And there’s a real possibility that, if this deal doesn’t fully reduce China’s influence, the U.S. could still impose a ban down the line.
For the hundreds of millions of U.S. TikTok users, this deal could mean being able to keep using the platform without disruption. Beyond that, it sets a precedent for how the U.S. handles foreign-owned tech platforms that raise national security concerns. If this framework holds, you might see more “spin-off” models: U.S. control with licensed foreign tech, but strict oversight.
The deadline for enforcement has now been moved to December 16, 2025, giving more time to iron out final details.
Subscribe to my whatsapp channel