TikTok’s U.S. operations would be controlled by an investor consortium including Oracle, Silver Lake, and Andreessen Horowitz, under a framework the U.S. and China are finalizing, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.
A new company will be created to operate TikTok, with U.S. investors holding a roughly 80% stake and Chinese shareholders owning the rest, the report said. The company would also have an American-dominated board, with one member designated by the U.S. government.
Current users of the app will be asked to shift to a new app, which TikTok has built and is testing, the newspaper reported.
Reuters had reported in July that TikTok was preparing to launch a stand-alone app for U.S. users, which was expected to operate on a separate algorithm and data system from its global app.
Oracle would handle user data at its facilities in Texas, The Wall Street Journal said, adding that while the U.S. and China are still working on the details of the potential deal, the terms may change.
TikTok, Oracle, Silver Lake, and Andreessen Horowitz—the latter also known as “a16z”—did not immediately respond to Reuters requests for comments.
U.S. President Donald Trump on Tuesday signed an executive order delaying the enforcement of a 2024 law requiring the divestiture of Chinese ownership of TikTok until December 16.
Earlier in the day, he also announced an agreement between the U.S. and China to keep TikTok operating in the United States.
—By Juby Babu, Reuters