The anticipated deal regarding TikTok’s operations in the United States is expected to be finalized within days, according to Dan Leavitt, a spokesperson for TikTok’s parent company, ByteDance. Speaking on a US broadcaster on Sunday, Leavitt emphasized that the agreement is crucial for the app, which has approximately 170 million users in the country, and aims to address ongoing concerns from US officials about data security and potential Chinese government influence.
Concerns have mounted over the possibility that the Chinese government could access vast amounts of personal data stored on TikTok, prompting US lawmakers to push for significant changes in the app’s ownership structure. Under the proposed agreement, TikTok would be “majority-owned by Americans” within the United States. Leavitt stated that six out of seven board seats for the app’s US operations would be held by American nationals.
The deal also stipulates that all data concerning American users will be stored on US cloud infrastructure managed by the American software firm Oracle. Leavitt noted, “The data and privacy will be led by one of America’s greatest tech companies,” adding that the algorithm governing the platform would also be under American control.
This deal comes in the wake of legislation passed by Congress in 2024, which mandated that TikTok must divest its US assets by January 2025 or face a shutdown. Despite this deadline, President Donald Trump has issued extensions, allowing negotiations for a new ownership structure to continue without immediate legal consequences. Trump, who has a significant following on TikTok with 15 million followers, has previously credited the platform with aiding his re-election campaign.
The White House has recently established an official TikTok account, reflecting the administration’s recognition of the app’s influence. Trump’s administration has taken steps to facilitate the sale of TikTok’s US assets, aiming to align with the 2024 law’s requirements for full divestiture.
While ByteDance maintains that it is partially owned by international investors—about 60 percent—the company’s substantial operations in Beijing mean it remains subject to various Chinese regulations. Despite the founders holding only a 20 percent stake, they retain control through special voting rights associated with their shares.
According to reports from The Wall Street Journal, potential US investors, including Oracle and investment firms like Silver Lake and Andreessen Horowitz, are expected to hold 80 percent of the newly formed US subsidiary, while the remaining 20 percent would be retained by Chinese shareholders.
The unfolding situation surrounding TikTok underscores the complex dynamics of international business, data privacy, and political influence, as the company navigates regulatory challenges while attempting to secure its future in the US market.
