TikTok, the popular short-video app owned by China’s ByteDance, is close to a deal that could keep the app alive in the U.S. The plan would give American investors majority control and create a new company worth up to $50 billion, according to the New York Post.
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U.S. and China Move Closer to a Deal
The New York Post reported that Washington and Beijing have agreed on a basic framework that could end years of tension over the app. At the center of the deal is TikTok’s powerful recommendation system, often called its “secret sauce” algorithm. Instead of remaining under ByteDance, the algorithm will be replicated by U.S. engineers, ensuring independence from Beijing’s influence.
President Trump, who once pushed to ban TikTok, has signaled support for the plan. He wrote on social media that talks with Chinese President Xi Jinping have gone “very well” and said young people in America “will be very happy” with the outcome.
New U.S. Company Could Be Worth $50 Billion
The deal would create a new American company valued at up to $50 billion to manage TikTok’s 172 million U.S. users. Investors set to hold controlling stakes include billionaire Jeff Yass of Susquehanna International and Bill Ford of General Atlantic Partners. ByteDance would retain a 19.9% minority stake while keeping ownership of TikTok’s global operations.
Oracle is expected to provide cloud services for the new TikTok entity. It is unclear whether co-founder Larry Ellison can take a direct stake, though sources say his son, David Ellison, may step in with an equity role.
Key Hurdles Remain
While the talks are moving forward, some details are still unclear. The biggest issue is how the algorithm will be copied and managed. The White House may also need to give another extension before the deal is complete.
In addition, some lawmakers still worry that TikTok could be a security risk even if U.S. investors take control.
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