TikTok to be controlled by US-led group including Oracle, Silver Lake and Andreessen Horowitz in proposed deal: report
News Summary
A proposed deal to avert a TikTok ban is taking shape, with several prominent US tech and investor firms set to gain majority control of the China-owned app. Under the terms, a group including Oracle, Silver Lake, and Andreessen Horowitz would form a new entity overseeing TikTok’s US operations, reportedly holding a combined stake of approximately 80%, with Chinese investors holding the remainder, adhering to Congress's 20% Chinese ownership limit. President Trump announced a deal with China, which he plans to confirm with Chinese President Xi Jinping. The new US-run entity would be overseen by an
Background
TikTok, a short-video app owned by China's ByteDance, has faced intense scrutiny and potential ban threats from the US government since President Trump's first term, citing concerns over user data security and potential Chinese government influence. US lawmakers and the administration have consistently expressed fears that user data could be accessed by Beijing and that the platform could be leveraged for propaganda. Following President Trump's re-election in 2024, his administration has continued its pressure campaign on Chinese technology firms, aiming for a
In-Depth AI Insights
What are the actual strategic gains for the Trump administration and Beijing beyond the stated divestment? - For the Trump administration, this represents a win-win: claiming protection of US data security and national interests while avoiding a complete ban that could alienate domestic users. It also provides leverage in broader trade and technology negotiations with China. Allowing partial Chinese ownership leaves flexibility for future deals in other sectors. - For Beijing, agreeing to this deal is likely a pragmatic choice after weighing pros and cons. While losing full control of TikTok's US operations, it prevents a complete disappearance from the US market, preserving some market share and technology licensing revenue, and potentially easing US-China tensions to gain room for other, more critical strategic interests. This could be seen as a strategy to mitigate pressure under extreme circumstances in a controlled manner. How does the proposed