TikTok US Undergoes Major Transformation: Oracle-Led Consortium Takes Control, New App & Data Security Planned

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Significant changes are on the horizon for TikTok’s operations in the United States. A high-profile investor consortium, spearheaded by tech giant Oracle, alongside private equity firm Silver Lake and venture capital powerhouse Andreessen Horowitz (a16z), is reportedly set to acquire an 80% stake in a newly formed entity that will oversee TikTok’s U.S. business.

A New Era for TikTok US: Ownership and Governance

According to recent reports, the framework for this substantial deal, which is currently being finalized between U.S. and Chinese authorities, outlines the creation of a dedicated company for TikTok’s American users. Within this structure, U.S. investors will hold the dominant 80% ownership, with Chinese shareholders retaining the remaining 20%.

Crucially, the governance of this new entity will feature an American-dominated board of directors. This board will include a member specifically designated by the U.S. government, a move designed to address national security concerns previously raised about the popular video-sharing application.

Enhanced Data Security and User Transition

A key component of this restructuring involves a significant shift in how user data is managed. Oracle is slated to take responsibility for handling all U.S. user data, which will be stored and processed at its secure facilities in Texas. This measure aims to bolster confidence in the privacy and security of American users’ information.

Furthermore, current users of the existing TikTok application in the U.S. will be asked to transition to a completely new, standalone app. This dedicated U.S. version, which TikTok has reportedly developed and is currently testing, is expected to operate on a separate algorithm and data system, distinctly independent from its global counterpart. This strategic separation was previously hinted at by Reuters, which reported on TikTok’s preparations for such a launch back in July.

Regulatory Landscape and Future Outlook

The intricate details of this potential deal are still under active negotiation between the U.S. and China, and the terms remain subject to change. However, the path forward received a temporary reprieve when U.S. President Donald Trump signed an executive order delaying the enforcement of a 2024 law that mandated the divestiture of Chinese ownership of TikTok until December 16, 2025.

The President’s announcement earlier on the same day also confirmed an agreement between the two nations, ensuring TikTok’s continued operation in the United States. While Oracle, Silver Lake, a16z, and TikTok itself have not yet publicly commented on these developments, the move signals a significant push to safeguard American data and national interests while allowing the immensely popular platform to thrive in the U.S. market.

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