The social media platform TikTok has become a focal point in US-China trade talks. While the two sides have reached a consensus on the basic framework, the technical and transaction details remain uncertain. Sources indicate that a consortium of US companies will ensure TikTok’s continued operation in the US, with software giant Oracle playing a key role.
Since President Trump took office, there have been numerous market reports of bidders for TikTok. A consortium of super-investors, including Oracle and the renowned venture capital firm Andreessen Horowitz, has continued to be the US government’s preferred bidder. The consortium came close to reaching a deal in April, but negotiations stalled again after Trump announced a new round of tariffs on China.
Fox News quoted Trump in late June as saying he had found a “very wealthy buyer” for TikTok, but that China’s approval was needed, and he believed it would be accepted. He also warned that if China ultimately rejected the deal, further tariffs could be retaliated against.
CBS News quoted sources as saying that it is unclear to what extent Chinese companies will be involved in the agreement regarding TikTok, but if an agreement is finally reached on the China-US framework consensus, Oracle will be one of the companies allowing TikTok to continue operating in the United States.
One possible option is rumored to be for ByteDance’s existing investors to jointly inject new capital into TikTok’s US operations, thereby diluting Chinese control to below the 20% threshold required by US law. ByteDance’s existing investors, Susquehanna Group and General Atlantic, are also potential buyers.
In addition, Amazon and a consortium led by Tim Stokely, founder of the adult social network OnlyFans, were also rumored to be interested in acquiring TikTok.
However, Blackstone Group, one of the top buyers, reportedly withdrew from the acquisition in July, reflecting the transaction’s high complexity and uncertainty.
