TikTok’s future in the United States is about to be rewritten. After years of political wrangling, lawsuits, and deadlines, a deal is finally on the table: Oracle, Andreessen Horowitz, and Silver Lake are lining up to buy a majority stake in TikTok’s US operations, a business pegged at $35 to $40 billion. President Donald Trump is preparing to discuss the framework with Chinese President Xi Jinping, potentially resolving one of the sharpest flashpoints in U.S.-China tech relations, according to Bloomberg.
The agreement would carve out a new, US-based version of the viral video app, with Oracle, Andreessen, and Silver Lake holding ownership stakes. ByteDance, TikTok’s parent company in Beijing, would see its share drop below 20 percent, bringing it into compliance with a 2024 US law requiring divestment or an outright ban.
Oracle and Andreessen Back $40B TikTok US Acquisition as Trump, Xi Finalize Talks
Oracle will continue to provide cloud services for TikTok, extending its Project Texas partnership that already stores US user data on American soil. Under the deal, ByteDance will license TikTok’s core technology, including the algorithms that fueled its massive growth, allowing the app to retain the addictive recommendation engine that turned it into a cultural phenomenon.
“The deal calls for Oracle to continue providing cloud services for TikTok, and for ByteDance to license the technology behind the app, with the US operations valued at about $35 billion to $40 billion. TikTok’s US operations would be acquired by a consortium that includes Oracle Corp., Andreessen Horowitz, and private equity firm Silver Lake Management LLC under a deal President Donald Trump is set to discuss with Chinese President Xi Jinping this week,” Bloomberg reported.
For ByteDance, the deal is both a concession and a lifeline. The company, once valued at $400 billion, is surrendering control of one of its most prized international assets but avoiding a ban that would have cut it off from TikTok’s 170 million American users. The agreement also comes at a politically delicate moment, woven into the broader negotiations between Washington and Beijing on trade. Without progress on TikTok, US officials said, talks between Trump and Xi later this year would have been at risk.
The valuation of TikTok’s US operations—estimated at $35 to $40 billion—reflects the app’s deep market foothold and the soaring valuations of tech companies in the AI era. Details remain fuzzy on exactly how much Oracle, Andreessen, and Silver Lake will invest, but people close to the talks say Oracle’s stake will be relatively small. Even so, Oracle’s stock jumped nearly 6 percent in New York before cooling off, underscoring Wall Street’s optimism about the company’s expanding cloud business.
The White House is being cautious about confirming specifics. “Any details of the framework agreement should be regarded as speculation unless announced by the administration,” a senior official said. Representatives for TikTok, Oracle, Andreessen, and Silver Lake declined to comment.
The politics surrounding TikTok have always been as important as the business case. Trump has credited the app with boosting his popularity among younger voters during his successful election comeback. Yet under the law signed by President Biden in 2024, ByteDance is barred from having any operational control, including involvement with the recommendation algorithm. The deal’s structure reflects that mandate, giving new investors 50 percent ownership, existing US investors about 30 percent, and ByteDance just under 20 percent.
This proposal isn’t entirely new. A similar framework nearly reached approval earlier this year before collapsing when China balked after Trump imposed sweeping tariffs. Now, with trade talks back on the table, both sides appear more motivated to close the deal.
Trump has already extended the deadline for TikTok’s divestiture multiple times, despite bipartisan pressure to enforce a ban. The latest reprieve, announced Tuesday, gives ByteDance until December 16 to finalize the sale—well beyond what the law technically allows. Critics question whether the extensions are legal, but the political appetite to challenge Trump on this issue has faded.
For now, TikTok’s US engineers are testing a new version of the app, one that mirrors the current platform but complies with the ownership changes. Once the deal is complete, American users will migrate over, likely without noticing much difference in how the app works day to day.
“This deal wouldn’t be done without proper safeguards for US national security,” Treasury Secretary Scott Bessent told CNBC, adding that both US and Chinese interests appear satisfied.
If finalized, the agreement would resolve a multi-year standoff, keep TikTok running in its most lucrative overseas market, and mark one of the largest forced corporate restructurings in tech history.