The Wall Street Journal has been given the framework for the TikTok deal. Here are the details:
Structure of the Deal
New U.S. entity: TikTok’s U.S. operations would be spun into a new company.
Ownership: U.S. investors—including Oracle, Silver Lake, and Andreessen Horowitz—would control ~80%, with Chinese shareholders holding the remainder.
Board: Majority American-dominated, with one seat designated by the U.S. government.
Technology & Data
Algorithms: Re-created by a U.S.-based engineering team, using technology licensed from ByteDance.
Data security: Oracle to manage U.S. user data at facilities in Texas.
Chinese concessions: Beijing agreed to allow licensing of TikTok’s algorithm and related IP.
Transition for Users
Existing U.S. TikTok users would migrate to a new app being built and tested.
Political Context
Talks in Madrid produced the framework.
Trump confirmed: “We’ve got a deal on TikTok. I’ll speak to Xi on Friday to confirm.”
Beijing pushing for a Trump visit to China later this year.
Negotiations trace back to January 2025, tied to a U.S. law signed in 2024 requiring TikTok to restructure or leave the market.
Investor Breakdown
U.S.-based investors include Oracle, Silver Lake, Andreessen Horowitz, and existing ByteDance investors like Susquehanna International, KKR, and General Atlantic.
ByteDance’s Chinese shareholder stake drops below 20%, meeting U.S. legal requirements.
Remaining Issues
National security: U.S. and Chinese officials still wary of potential influence over algorithms and user data.
Scrutiny: Final details subject to approval in both capitals.
✅ Summary in one line: TikTok’s U.S. business will be spun into a new Oracle-led consortium with 80% U.S. ownership, American-controlled governance, licensed algorithms, and Oracle-managed data in Texas, with final terms awaiting Trump–Xi confirmation.
Shares of Oracle are currently trading up $1.30 or 0.48% at $303.46
