A proposal is in the works to save TikTok from a ban in the United States. Several U.S. venture capital firms, tech companies, and private equity funds are planning to invest. The idea is to create a new U.S.-based company that will run TikTok domestically.
This agreement toolkit was discussed between U.S. and Chinese negotiators recently in Madrid. It resembles an earlier plan proposed to former President Donald Trump before tariffs complicated the discussions.
The group of investors is expected to control about 80% of TikTok, while Chinese investors will have the remainder. Notable names like Oracle, Silver Lake, and Andreessen Horowitz are involved. This new company will also have an American majority board, including a member appointed by the Trump administration.
According to The Wall Street Journal, these details are still being finalized. They could shift before a scheduled phone call between Trump and Chinese leader Xi Jinping.
Larry Ellison of Oracle, who briefly was the world’s richest person, is rumored to be pursuing TikTok’s U.S. assets. Trump has previously supported this move. Oracle has been working with TikTok since 2020, providing cloud services and trying to negotiate the app’s purchase.
Trump has called for a 50-50 joint venture between TikTok’s parent company, ByteDance, and a U.S. owner. However, laws signed by President Biden limit China’s ownership to less than 20% in TikTok’s U.S. business.
As negotiations continue, Trump signed an executive order extending the TikTok enforcement ban for another three months. This step is crucial to avoid TikTok becoming unavailable in the U.S. The ban, which started in January 2025, has been extended multiple times since.
The latest announcement indicates a deal between the U.S. and China to ensure TikTok remains operational in America. Trump has long wanted to take TikTok’s assets away from Chinese control, which has been a sticking point for negotiations.
U.S. Treasury Secretary Scott Bessent shared that China eventually agreed to discussions after Trump threatened to shut down TikTok if a deal wasn’t reached.
“A significant moment was when President Trump indicated he would let TikTok go dark,” Bessent stated.
Bessent anticipates that Trump and Xi will finalize the deal soon. Much of the framework for an American-led buying group was already in place months ago before tariffs disrupted talks. Once those tariffs were lowered, negotiations resumed.
However, there were still concerns over national security and necessary approvals from China.
Bessent noted, “We were not going to compromise on national security just for a deal.” In the end, both sides made concessions, and terms, as well as investor names, will be announced soon.
Bessent remarked on Trump’s leadership during the negotiations, saying, “It’s a satisfactory arrangement for U.S. interests.”
Another strategic point in the negotiations was a meeting that China wished to set up between Xi and Trump. U.S. officials have stated that resolving TikTok’s situation is vital for that meeting to happen, which could be scheduled for next month.
For further information, you can refer to the executive order on TikTok, which is accessible here.
