Topline
An investor group headlined by Larry Ellison’s Oracle, the private equity Silver Lake and Marc Andreessen’s venture capital firm will hold a controlling stake in TikTok’s new U.S. business, the Wall Street Journal reported Tuesday, as President Donald Trump claimed a deal was struck to keep the China-based app online nationwide.
President Donald Trump signaled earlier, “We’ve got a deal on TikTok.”
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Key Facts
Oracle, Silver Lake and Andreessen Horowitz are among U.S investors who will hold an estimated 80% stake in a new U.S. company that will operate TikTok, with Chinese shareholders owning the remaining shares, the Wall Street Journal reported, citing people familiar with the matter.
Oracle will control user data at its facilities in Texas under the new company, whose board will primarily consist of Americans and one member designated by the U.S. government, according to the Journal.
Susquehanna International, KKR and General Atlantic and other existing investors in ByteDance, TikTok’s parent firm, would also be part of the controlling group.
What To Watch For
“We’ve got a deal on TikTok,” Trump said earlier Tuesday, noting he would speak with Chinese President Xi Jinping on Friday to confirm the deal’s framework. Trump later signed an executive order to extend a deadline for a TikTok sale to Dec. 16, allowing additional time for talks to finalize. CNBC reported the deal is expected to close in the next 30 to 45 days, citing unnamed sources familiar with details of the negotiations. Treasury Secretary Scott Bessent told the outlet the deal was completed “in essence” in March or April, but talks were delayed after Trump announced tariffs.
Forbes Valuation
Ellison is the world’s second-wealthiest person with an estimated net worth of $366.6 billion as of Tuesday. His fortune eclipsed the $400 billion threshold earlier this month after Oracle unveiled larger-than-expected projections for its AI business, as Ellison neared Elon Musk, whose net worth is estimated at $476.7 billion.
Key Background
Trump previously extended a deadline three times for ByteDance to divest TikTok’s U.S. business or face a ban in the country. Trump has suggested multiple times this year that several U.S. companies and investors could buy the app, including Microsoft and a “group of very wealthy people,” while others—Perplexity AI, marketing platform AppLovin and conservative-leaning video platform Rumble—had expressed interest. A ban on TikTok was passed in April 2024, following bipartisan concerns the app posed possible national security threats. Forbes has reported about concerns of TikTok spying on journalists, promoting Chinese propaganda, mishandling user data and tracking “sensitive words.” The app was briefly shut down in the U.S. in January as part of the ban.
Further Reading
U.S. Investors, Trump Close In On TikTok Deal With China (Wall Street Journal)