Oracle, Silver Lake to Control 80% Stake in TikTok in U.S.

TikTok’s US operations will be controlled by an investor consortium including Oracle, Silver Lake, and Andreessen Horowitz under a framework the US and China are finalizing, The Wall Street Journal reported Tuesday, citing people familiar with the matter.

Oracle would handle US user data at its facilities in Texas.

A new company will be created to operate TikTok, with US investors holding roughly an 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 US government, Juby Babu of Reuters also reported. Current users of the app will be asked to shift to a new platform, which TikTok has already built and is testing, The Washington Post reported.

Reuters had reported in July that TikTok was preparing to launch a standalone app for US users, expected to run on a separate algorithm and data system from its global app.

Oracle would handle US user data at its facilities in Texas, WSJ said, adding that while Washington and Beijing are still finalizing details of the potential deal, the terms could change.