Here’s what you should know about the US TikTok deal
A number of investors are competing for the opportunity to purchase the app, and if a deal were to go through, the platform's U.S. business could have its valuation soar to upward of $60 billion.
TikTok, owned by the Chinese company ByteDance, has been at the center of controversy in the U.S. for four years now due to concerns about user data potentially being accessed by the Chinese government.
As a result, U.S. users have often found themselves caught in the middle of this tension. Earlier this year, the app experienced a temporary outage in the U.S. that left millions of users in suspense before it was quickly restored. TikTok returned to the App Store and Google Play Store in February.
A number of investors competed to purchase the app, and after Trump extended the TikTok ban deadline for the fourth time, the battle is finally over. As of last week, TikTok officially signed a deal to divest a portion of its U.S. entity to a group of American investors.
This comes nearly three months after President Donald Trump signed an executive order that approves the sale of TikTok’s U.S. operations to an American investor group.
A week prior, President Trump announced that President Xi Jinping of China had given his approval of a TikTok deal, which would allow a consortium of U.S. investors to control the platform. ByteDance stated publicly that it would ensure the platform remains available to American users.
Who owns TikTok in the U.S.?
**Image Credits:**Bryce Durbin / TechCrunch
According to a memo viewed by TechCrunch, the investor group consists of Oracle, private equity firm Silver Lake, and investment firm MGX. Collectively, they will hold 45% of the U.S. operation, with ByteDance keeping nearly a 20% stake. Axios first reported the news, citing sources who estimate TikTok U.S. is valued at approximately $14 billion—a figure also mentioned by Vice President JD Vance.
In September, a report indicated that a “framework” deal was established between the U.S. and China, with a consortium of investors— including Oracle, Silver Lake, and Andreessen Horowitz—overseeing TikTok’s U.S. operations. These investors were expected to hold an 80% stake, and the remaining shares would belong to Chinese stakeholders.
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