TikTok Ownership Structure Revealed in US-China Deal Framework

A comprehensive framework for TikTok’s future ownership has emerged from recent negotiations between American and Chinese representatives, revealing the structure of what could become one of the largest social media acquisitions in history. The proposed arrangement would establish a new American-based entity to operate the popular video platform domestically.

Under the negotiated terms, a consortium of prominent US investors would control approximately 80% of TikTok’s American operations, while Chinese stakeholders would retain the remaining 20% ownership stake. This division aligns with federal legislation requirements that limit Chinese ownership in critical technology platforms operating within United States borders.

The investor group includes several heavyweight technology and financial entities. Oracle, the enterprise software giant, features prominently alongside prestigious venture capital firms Andreessen Horowitz and private equity powerhouse Silver Lake. These established players bring substantial financial resources and technological expertise to the proposed acquisition structure.

Governance and Administrative Framework

The new operational structure would feature a predominantly American board of directors, ensuring domestic oversight of platform operations and strategic decisions. Significantly, the Trump administration would maintain the authority to appoint at least one board member, providing direct governmental representation in TikTok’s governance structure.

This administrative arrangement addresses longstanding national security concerns that have driven regulatory pressure on TikTok’s Chinese parent company, ByteDance. The framework represents a compromise between complete forced divestment and maintaining status quo operations under foreign control.

Oracle’s involvement carries particular significance given the company’s existing relationship with TikTok. Since 2020, Oracle has provided cloud hosting services for TikTok’s American user data, establishing technical infrastructure that could facilitate the ownership transition. Additionally, Oracle previously negotiated a similar acquisition attempt during the first Trump administration, though that deal ultimately failed to materialize.

Timeline and Executive Actions

President Trump has extended TikTok’s operational deadline by three months through executive order, preventing the platform from going dark while negotiations continue. This represents the fourth such extension since the original ban took effect in January, demonstrating the complexity of reaching a mutually acceptable agreement.
Treasury Secretary Scott Bessent indicated that substantial progress occurred following direct presidential intervention. According to Bessent’s statements, Trump’s willingness to allow TikTok’s complete shutdown provided crucial leverage in convincing Chinese negotiators to accept American ownership terms.

The framework discussions took place in Madrid, with both American and Chinese negotiating teams working to resolve remaining technical and legal obstacles. While the basic structure appears settled, implementation details continue requiring refinement before final agreements can be executed.

Strategic Implications and Market Impact

The proposed deal structure represents a significant shift from Trump’s previously stated preference for a 50-50 joint venture arrangement. Current federal legislation explicitly prevents Chinese entities from maintaining majority ownership in platforms deemed critical to national security, necessitating the 80-20 ownership split.

Larry Ellison, Oracle’s executive chairman who briefly held the title of world’s richest person, has emerged as a central figure in the acquisition discussions. His company’s existing technical relationship with TikTok and his personal support for Trump’s political agenda position Oracle as a natural lead investor in the consortium.
The agreement’s success depends on continued cooperation between American and Chinese leadership. A scheduled phone conversation between Trump and Chinese President Xi Jinping could finalize remaining terms and provide official endorsement from both governments.

Future Implications

This ownership restructuring could establish precedents for other Chinese-owned technology platforms operating in American markets. The framework balances national security concerns with economic interests while preserving TikTok’s continued operation for millions of American users.

The deal’s completion would resolve months of uncertainty surrounding TikTok’s American future while creating new opportunities for domestic investors in the rapidly evolving social media landscape.