TikTok's U.S. Future Secured: Oracle Leads $14B Deal
A group of investors, including media mogul Rupert Murdoch and tech giants Oracle and Dell, has agreed to take over TikTok's U.S. operations. The deal, valued at around $14 billion, was initially negotiated under the Trump administration and aims to keep the popular social media platform running in the U.S.
TikTok, launched in 2016 by ByteDance, has amassed around 170 million users in the U.S. The deal involves a new U.S.-based TikTok entity, with Oracle overseeing operations, providing cloud services, and controlling the app's algorithm. The group of investors, led by Oracle, will own about 65% of the U.S. version of TikTok, while ByteDance and Chinese investors will own less than 20%.
The agreement ends the legal limbo following a 2024 bipartisan law requiring TikTok's U.S. operations to be divested from ByteDance. Trump's executive order advanced the deal, allowing TikTok to continue operating in the U.S. The latest executive order delays implementation by 120 days to finalize negotiations. A seven-member board of directors, with six Americans, will control the new version of TikTok.
The deal ensures TikTok's continued presence in the U.S., with American companies owning a majority stake. Oracle and other investors, including Rupert Murdoch and Michael Dell, will work together to maintain TikTok's popularity while addressing national security concerns. Final details are yet to be announced.
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