TikTok’s American business is set to be acquired by a consortium including Oracle Corp (NYSE:ORCL, ETR:ORC), Andreessen Horowitz and Silver Lake, under a framework deal revealed after US-China talks in Madrid.
President Trump is expected to discuss the plan directly with Xi Jinping this week.
The agreement would create a US-based version of the app, satisfying a 2024 US law requiring ByteDance, TikTok’s Beijing parent, to reduce its stake below 20% or face a nationwide ban.
The platform’s 170 million American users would migrate to the new entity, while ByteDance licenses the algorithms that underpin TikTok’s recommendation system.
Oracle, already a partner through its “Project Texas” cloud-hosting deal, will continue managing US user data. Other financial terms remain unclear, though TikTok’s US arm is estimated to be worth $35–40 billion.