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A year-long geopolitical standoff over the future of TikTok in America may be nearing its conclusion, with Washington and Beijing closing in on a landmark agreement that would shift control of the platform’s US business to an American-led investor group. According to Bloomberg News reporting, US Treasury Secretary Scott Bessent confirmed that Chinese approval for the plan had been secured during discussions in Kuala Lumpur. Speaking on Fox Business, Bessent , cited by Bloomberg , said the TikTok agreement could be finalized “in the coming weeks and months,” hinting at one of the most consequential deals in modern tech and geopolitical history. If completed, the agreement would see a strategic restructuring of TikTok’s US operations and could reshape data governance, platform control, and the global future of Chinese consumer tech firms. A Forced Deal , Driven by Security & Politics TikTok’s fate has been tied to US national-security law ever since the Protecting Americans from Foreign Adversary Controlled Applications Act, signed under former President Joe Biden. The law requires ByteDance to divest TikTok US or face a ban , a deadline now extended to January 2026 by President Donald Trump after returning to office. Trump has publicly positioned the agreement as both a security necessity and a model for “tech sovereignty” , where critical digital platforms used by Americans must be controlled domestically. Experts note this deal is also a symbol: a digital iron curtain separating Chinese tech influence from Western information ecosystems. Who Will Own TikTok US? While official announcement details remain pending, Bloomberg reporting suggests the new ownership will include: Oracle Corp. (cloud and security lead) Silver Lake (existing ByteDance investor) Abu Dhabi-based MGX (strategic investment partner) Other American technology and media investors Trump has also hinted , in comments noted by Bloomberg , that figures such as Larry Ellison and Michael Dell may be part of the structure. Ownership structure expected: ByteDance stake capped below 20% Americans to hold 6 out of 7 board seats ByteDance to nominate one board member with no security committee access The architecture is designed to satisfy US national-security guidelines , while allowing ByteDance to preserve limited commercial interest. The Algorithm Question: The Deal’s Heart TikTok’s secret algorithm , the machine-learning engine driving content discovery , remains the center of the deal. According to Bloomberg’s reporting on White House briefings: TikTok US will license the algorithm from ByteDanceThe code will be retrained from scratch in the USOracle will oversee algorithm security and behaviorByteDance will have zero access to US user data or algorithm governanceAll American user data stored on Oracle-secured serversThis represents one of the most aggressive attempts by any government to wall off algorithmic IP while preserving platform availability. How Much Is TikTok US Worth? Per Bloomberg’s coverage, US Vice President J.D. Vance values TikTok US at: ~$14 billion , dramatically lower than the previous $35–$50 billion estimates. Why such a discount? Regulatory uncertaintyAlgorithm licensing instead of full transferSeveral years of stalled strategic investmentStructural restrictions limiting ByteDance’s upside Even at $14B, TikTok US remains enormous , with revenue reportedly exceeding $10B annually, though not yet consistently profitable, Bloomberg noted. Why It Matters Beyond TikTok TikTok isn't just an app , it sits at the heart of three global battles: 1️⃣ Tech Sovereignty The deal signals a future where digital platforms may need national-jurisdiction buy-ins to operate at scale globally. 2️⃣ Social Influence Power TikTok is the dominant cultural engine for Gen Z, shaping trends, politics, and commerce. Washington wants that influence domestically controlled. 3️⃣ Geopolitical Signaling The move comes amid: US export controls on Chinese semiconductorsBeijing’s restrictions on rare-earth technologiesEscalating tech-nationalism and data-patriotism TikTok is now the most successful overseas product ever created by China's tech ecosystem , and its re-domestication will echo for decades in global tech strategy. Why The US Didn’t Ban TikTok Immediately Despite fiery bipartisan rhetoric, Washington avoided pulling the trigger on an outright ban, instead pursuing a forced-divestiture model to: Avoid backlash from 170 million US usersPreserve creator-economy momentumProvide a stable commercial transition pathAvoid a precedent China could weaponize against US firms in Asia In essence, Washington chose regulation over rupture , for now. Will China Play Ball? China’s Commerce Ministry has stated it will “properly handle” the TikTok issue but has not formally confirmed full sign-off. However, Bloomberg reporting suggests Xi Jinping signaled willingness to cooperate in Malaysia meetings , though China will seek to ensure this does not become a template for dismantling other Chinese platforms abroad. What Happens Next TikTok continues normal operations as lawyers, regulators, and investors finalize the structure. What Happens Next TikTok will continue operating normally while lawyers, regulators, and investors finalize the deal structure. Key upcoming steps include: Deal Execution Window Timeline: 120 days from signing under the Trump orderChinese Regulatory Approval Status: Awaiting formal public announcementUS Security Review Timeline: Expected completion by late 2025Full Corporate Separation Deadline: January 2026 Overall, in a world where AI dominance, data control, and digital sovereignty shape global power, this agreement goes beyond a social media app — it's about determining who controls the information future. In an environment where AI leadership, data control, and digital sovereignty define power, this deal is about more than an app , it's about who shapes the information future. If completed, the TikTok deal will be the largest, most geopolitically charged digital carve-out ever attempted. It highlights a world where software borders are becoming as real as physical ones , and where algorithms can be as strategically vital as aircraft carriers. A successful resolution may calm one of the tensest fronts in US-China relations , at least temporarily. But the strategic contest for digital dominance is nowhere near over.
