TikTok's U.S. Operations to Be Managed by Oracle Under New Agreement

A proposed agreement will allow TikTok to continue its operations in the United States, with Oracle overseeing the app's security operations. This arrangement aims to address national security concerns by separating TikTok's core technology from its Chinese parent company, ByteDance.

Under the deal, ByteDance will retain less than a 20% stake in TikTok's U.S. operations. The new U.S. entity will be a joint venture with a board majority from American firms, including Oracle and Silver Lake as confirmed investors.

President Donald Trump is expected to sign an executive order later this week approving the proposed deal, which will include a 120-day extension to finalize the terms. This move is intended to prevent a potential U.S. ban on TikTok, as mandated by a 2024 law requiring ByteDance to divest its ownership by January 2025.

The agreement also stipulates that Oracle will manage the security of TikTok's U.S. operations by overseeing a licensed copy of its recommendation algorithm. This measure is designed to ensure that the algorithm operates independently from ByteDance, mitigating concerns about potential manipulation by Chinese authorities.

The White House has expressed confidence that China has approved the deal and that it will not encounter regulatory hurdles. An official stated that the U.S. government will not take an equity stake or appoint representatives to the controlling committee of the new entity.