TikTok Deal Would Put U.S. Investors in Control of American Operations

A framework tentatively agreed by U.S. and Chinese officials would place TikTok’s U.S. operations under an American investor consortium, with control shifted to an 80 percent stake held by the U.S. side and a 20 percent minority owned by ByteDance, the Chinese parent company. The arrangement, described by people familiar with the talks, aims to address national-security concerns while preserving access to a popular platform used by about 170 million Americans. It follows months of tense trade negotiations and would shape not only how Americans use the app but how Washington balances security interests with broader relations with Beijing. Leaders from both countries had suggested progress on related issues and were preparing to meet later this year, with discussions on a possible pathway to implement the framework already underway ahead of a forthcoming Asia-Pacific Economic Cooperation summit in October.

Under the reported terms of the deal, the U.S. operations would be run by an investor consortium that includes Oracle, Andreessen Horowitz and Silver Lake. The consortium would cumulatively own an 80 percent stake, while ByteDance would retain a 20 percent stake to satisfy U.S. legal requirements. The arrangement also envisions ensuring that U.S. operators maintain data security and content oversight, with a Bytedance partner taking a lead role in U.S. data governance under the framework. Several investors who donated to former President Donald Trump’s 2024 campaign were noted as likely to benefit from the deal, including Jeff Yass, co-founder of Susquehanna International, and William Ford, chief executive of General Atlantic and a ByteDance board member.

The future of TikTok’s core algorithm—the engine of its engagement—remains a central point of uncertainty. The White House did not immediately comment on the specifics, and the administration has previously cautioned that details of any framework must be announced officially by the current administration. China’s Cyberspace Administration official Wang Jingtao has said the algorithm is expected to remain largely the same because licensing arrangements would preserve its core functions. The Wall Street Journal reported that TikTok engineers could migrate U.S. users to a newly built app that would be hosted in the United States and operate on an algorithm licensed from ByteDance but rebuilt by American engineers. A Bytedance partner would assume leadership over U.S. user data and content security, according to Wang, signaling a shift in data governance that would be central to any agreement.

Why was TikTok scrutinized in the United States in the first place? ByteDance’s acquisition of Musical.ly helped propel TikTok’s rapid rise in the United States, where the platform has become especially popular among younger users and has become a major channel for advertisers and creators. The app’s popularity is matched by concerns that its data practices could expose U.S. users to Chinese-government access. The Justice Department had previously described the Chinese company as posing a national-security risk, arguing that data flows could enable potential surveillance or influence. A bipartisan 2024 bill proposed divestment requirements aimed at routing a substantial portion of TikTok’s assets to U.S. operators, though political support and practical implementation have evolved in the months since.

As lawmakers weighed the security questions, support for the app within parts of the U.S. administration and among some political circles softened in recent months, partly due to the app’s economic and cultural reach. Trump has repeatedly emphasized the app’s value and the importance of U.S. ownership, arguing that the country should maintain leverage over a platform that is widely used by American consumers and businesses alike. He has also used public statements to describe ongoing discussions as productive and to signal that a final decision would rest with U.S. authorities, whereas Xi has urged a fair and open business environment for Chinese companies while approving a framework that satisfies Chinese legal authority over technology.

The discussions reflect a broader approach to tech and security in an era of heightened U.S.-China tensions. The framework’s aim is to provide a clear path for a U.S.-led ownership structure while preserving access to a ubiquitous social platform for millions of U.S. users and thousands of businesses that rely on TikTok for marketing, outreach and revenue. The outcome will hinge on regulatory approvals, data-security assurances, and the ability of the involved investors to operate under both U.S. and international legal regimes. The timeline remains fluid, with officials cautious about prematurely characterizing any agreement as final.

If the framework advances, a formal agreement would need to clear multiple regulatory hurdles, including potential antitrust review, national-security considerations, and ongoing security assessments mandated by U.S. law. The negotiations also come amid broader negotiations with China on trade, fentanyl controls and regional security, with both sides signaling a willingness to tackle several high-stakes issues in tandem. The October APEC meeting in South Korea looms as a potential forum for further discussions between the leaders, with reciprocal visits anticipated to flesh out the practical steps required to implement the framework while safeguarding national security and data integrity. Until the administration formally announces the terms, analysts and industry observers will watch closely for how the proposed ownership split would affect the platform’s governance, its algorithm, and the daily experience of its vast user base in the United States.