The White House is spearheading negotiations on the future of TikTok, with discussions centering around a plan for major United States investors in parent company ByteDance to increase their stakes and acquire the app’s U.S. operations, sources familiar with the talks revealed.
The proposed deal would create a separate U.S. entity for TikTok, reducing Chinese ownership below the 20% threshold required by U.S. law. This move aims to prevent a nationwide ban on the popular video-sharing platform, which has been under scrutiny over national security concerns.
Investment firms Susquehanna International Group and General Atlantic, both represented on ByteDance’s board, are leading the discussions alongside the White House. Private equity firm KKR is also involved, one source confirmed. The discussions come after legislation passed last year mandated ByteDance to sell TikTok or face a U.S. ban due to fears of Chinese government influence.
Critics argue the ban would violate free speech rights under the First Amendment, while TikTok insists it operates independently of Beijing. The company has emphasized that its recommendation algorithm and U.S. user data are stored on Oracle’s cloud servers, with content moderation decisions made within the United States.
Under the proposed deal, Oracle would continue managing U.S. user data, ensuring it remains inaccessible to Chinese authorities, according to sources. The Financial Times reported that other investors, including Coatue, are also part of the talks.
President Donald Trump, who initially supported banning TikTok, delayed enforcement of the law after taking office again in 2025. He has since suggested extending the deadline further to negotiate a deal. Other investor groups, including those led by billionaire Frank McCourt and YouTube star MrBeast, have expressed interest in acquiring TikTok’s U.S. operations.
