White House Advances TikTok U.S. Spinoff with Major Investors
The White House has provided further clarity on the evolving TikTok ownership arrangement, confirming that a deal to spin off the app’s U.S. operations under majority American ownership is imminent but not yet finalized. President Donald Trump indicated that prominent figures, including media moguls Rupert Murdoch and his son Lachlan Murdoch, are likely to join the investor consortium acquiring TikTok’s U.S. business. Trump also mentioned potential involvement from Oracle’s executive chairman Larry Ellison and Dell Technologies CEO Michael Dell.
Murdoch Family’s Role in TikTok Deal
Trump’s remarks on Fox News suggested that Lachlan Murdoch is actively engaged in the deal, with Rupert Murdoch expected to be part of the investment group. Following these comments, reports confirmed that Fox Corporation, led by CEO Lachlan Murdoch and chaired by Rupert Murdoch, is negotiating to join the investor group backing TikTok’s U.S. spinoff from ByteDance.
Key Terms of the Proposed TikTok U.S. Structure
White House Press Secretary Karoline Leavitt outlined that the deal entails American investors holding six out of seven board seats in the restructured TikTok. Additionally, the platform’s recommendation algorithm will be controlled within the United States, addressing longstanding national security concerns.
“So all of those details have already been agreed upon, now we just need this deal to be signed and that will be happening, I anticipate, in the coming days,” Leavitt stated during a Fox News interview.
Investor Group Composition and Ownership Breakdown
According to Bloomberg and other sources, the investor consortium will include Oracle, venture capital firm Andreessen Horowitz, and private equity firm Silver Lake Management. Oracle will be tasked with overseeing TikTok’s security and safety operations. ByteDance, the current Chinese owner of TikTok, is expected to retain less than a 20% stake in the newly formed U.S. entity.
Regulatory Context and Timeline
A federal bill passed last year had set a January deadline to ban TikTok in the U.S. unless ownership was restructured. The app briefly ceased operations before Trump extended multiple deadlines to allow ByteDance more time to finalize a sale. Trump recently confirmed that Chinese President Xi Jinping has approved the deal, a critical step for the transaction to proceed. TikTok issued a statement expressing gratitude to both Xi and Trump for preserving its U.S. availability.
“ByteDance will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok U.S.,” the company declared.
FinOracleAI — Market View
The forthcoming TikTok U.S. spinoff represents a landmark case in balancing national security concerns with the operational continuity of a major social media platform. The inclusion of established American investors and control over key technological assets could set a precedent for future tech transactions involving foreign-owned entities.
- Opportunities: Strengthened U.S. oversight may mitigate security risks and foster greater regulatory compliance.
- Risks: Potential operational challenges integrating diverse investor interests and maintaining TikTok’s user growth momentum.
- Market Impact: Positive investor sentiment toward American-led tech governance and cross-border deal facilitation.
- Regulatory Precedent: Establishes a framework for handling foreign ownership of sensitive digital platforms.
Impact: The deal’s execution could stabilize TikTok’s U.S. presence while addressing security concerns, marking a significant development in tech policy and investment strategy.
