Trump and Xi edge closer to a TikTok deal. US investors like Oracle and Andreessen Horowitz set to take control. Here’s what it means.
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We Now Know Who the New Owners of TikTok Will Be — If Trump Gets His Deal Done with Xi
TikTok’s future in the United States is one step closer to being secured. A new proposal, finalized during negotiations in Madrid, outlines how a consortium of American investors and tech companies will take majority control of TikTok’s US operations — provided President Donald Trump and Chinese President Xi Jinping strike the deal this week.
A Framework for TikTok’s American Future
According to sources familiar with the talks, the new investor group would own around 80% of TikTok, leaving Chinese shareholders with no more than 20% — a requirement of US law. Among the companies involved are:
- Oracle
- Andreessen Horowitz
- Silver Lake Partners
The new entity would operate under a majority-US board, with at least one member appointed directly by the Trump administration.
While the final terms remain under discussion, the framework mirrors the original April deal — only delayed by Trump’s sweeping tariffs on Chinese imports, which had briefly derailed negotiations.
Oracle and Larry Ellison’s Role
Oracle’s executive chairman Larry Ellison is expected to play a central role. Ellison, who briefly became the world’s richest man last week, has long been rumored as Trump’s preferred buyer.
Oracle already has an existing partnership with TikTok, hosting the app’s US data since 2020. That relationship makes the tech giant uniquely positioned to lead the new ownership structure.
Trump Extends TikTok Ban Deadline
To keep negotiations alive, Trump signed an executive order extending the TikTok ban by three months, narrowly avoiding the app going dark in the United States.
The ban, originally set for January 2025, has already been extended multiple times. Trump’s latest move signals his determination to finalize a deal rather than pull the plug on an app with 170 million US users.
The Turning Point: US Pressure on China
US Treasury Secretary Scott Bessent revealed that Trump’s hardline stance — including the threat of letting TikTok “go dark” — ultimately forced China back to the negotiating table.
“President Trump made it clear he was willing to shut TikTok down if necessary,” Bessent said, adding that national security concerns were non-negotiable.
The breakthrough came when both sides agreed on safeguards that limited China’s influence while protecting US data privacy.
Why This Deal Matters
TikTok isn’t just a social media app — it’s a political, economic, and cultural battleground:
- National Security: US officials want full control over TikTok’s algorithm and data handling.
- Geopolitical Leverage: China sees the app as a symbol of its tech influence, while Trump is using it as a bargaining chip in broader US-China relations.
- Youth Vote: With 170 million users, many of them under 30, TikTok plays an outsized role in shaping public opinion — making its future a political flashpoint.
The deal also serves as a stepping stone toward a potential Trump-Xi meeting at next month’s APEC Summit in South Korea.
FAQs
Q1: Who will own TikTok if Trump’s deal succeeds?
A consortium of US investors — including Oracle, Andreessen Horowitz, and Silver Lake — will control about 80%, while Chinese shareholders retain up to 20%.
Q2: Why does the US want control of TikTok?
To protect national security, ensure American oversight of the algorithm, and reduce Chinese influence over US user data.
Q3: What happens if the deal falls apart?
If no agreement is reached, TikTok could face a nationwide ban in the United States.
Q4: Why is Oracle so important in this deal?
Oracle already hosts TikTok’s US data and has strong political ties, making it a natural lead investor.
Conclusion
The future of TikTok in the United States hinges on this high-stakes deal between Trump and Xi. With US investors ready to take the reins and Oracle at the helm, the agreement could mark a turning point in tech geopolitics.
For now, all eyes are on Trump’s upcoming call with Xi — a conversation that could determine whether TikTok survives in America or disappears for good.