Wall Street Journal: The framework for the TikTok deal (still to be approved)

The Wall Street Journal has been given the framework for the TikTok deal. Here are the details:

Structure of the Deal

• New U.S. entity: TikTok’s U.S. operations would be spun into a new company.

• Ownership: U.S. investors—including Oracle, Silver Lake, and Andreessen Horowitz—would control ~80%, with Chinese shareholders holding the remainder.

• Board: Majority American-dominated, with one seat designated by the U.S. government.

Technology & Data

• Algorithms: Re-created by a U.S.-based engineering team, using technology licensed from ByteDance.

• Data security: Oracle to manage U.S. user data at facilities in Texas.

• Chinese concessions: Beijing agreed to allow licensing of TikTok’s algorithm and related IP.

Transition for Users

• Existing U.S. TikTok users would migrate to a new app being built and tested.

Political Context

• Talks in Madrid produced the framework.

• Trump confirmed: “We’ve got a deal on TikTok. I’ll speak to Xi on Friday to confirm.”

• Beijing pushing for a Trump visit to China later this year.

• Negotiations trace back to January 2025, tied to a U.S. law signed in 2024 requiring TikTok to restructure or leave the market.

Investor Breakdown

• U.S.-based investors include Oracle, Silver Lake, Andreessen Horowitz, and existing ByteDance investors like Susquehanna International, KKR, and General Atlantic.

• ByteDance’s Chinese shareholder stake drops below 20%, meeting U.S. legal requirements.

Remaining Issues

• National security: U.S. and Chinese officials still wary of potential influence over algorithms and user data.

• Scrutiny: Final details subject to approval in both capitals.

✅ Summary in one line: TikTok’s U.S. business will be spun into a new Oracle-led consortium with 80% U.S. ownership, American-controlled governance, licensed algorithms, and Oracle-managed data in Texas, with final terms awaiting Trump–Xi confirmation.

Shares of Oracle are currently trading up $1.30 or 0.48% at $303.46

This article was written by Greg Michalowski at investinglive.com.