A major American consortium, reportedly including tech giant Oracle and prominent venture capital firms like Silver Lake and Andreessen Horowitz, is in advanced discussions to acquire a controlling interest in TikTok’s U.S. operations. The potential deal would see the consortium taking an 80% stake in the U.S. arm of the short-form video app, a move designed to resolve ongoing national security concerns from Washington. The reported valuation of the deal has not been made public, but sources close to the matter suggest it would be a significant transaction in the technology sector.
The consortium is expected to create a new entity that would oversee TikTok’s U.S. operations, ensuring that user data is stored on American servers and is subject to U.S. legal and regulatory oversight. This proposed structure, often referred to as a “Project Texas”-style arrangement, aims to satisfy lawmakers and intelligence officials who have long expressed apprehension about the app’s Chinese parent company, ByteDance. The plan would also involve Bytedance retaining a minority stake and a seat on the board, but without any direct control over U.S. data or business operations.
For the American firms, the deal represents a lucrative opportunity to gain a significant foothold in one of the world’s most popular social media platforms. For TikTok, it’s a strategic maneuver to avoid a complete ban in the United States, allowing the company to continue operating in its largest and most profitable market. While the negotiations are still ongoing and no official agreement has been announced, this development signals a potential path forward for TikTok to navigate the complex geopolitical landscape it faces in the U.S.
