Discussions led by the White House regarding TikTok's future are converging on a strategy for significant non-Chinese investors in parent company ByteDance to increase their investments and take over the app's US operations.
This strategy involves creating a U.S. subsidiary for TikTok and reducing Chinese ownership in the new entity to below the 20 percent limit set by US law, thereby saving the app from an impending ban in the US.
Jeff Yass’ Susquehanna International Group and Bill Ford’s General Atlantic, both of which hold positions on ByteDance’s board, are spearheading negotiations with the White House on this strategy.
According to the plan, Oracle, the software giant, would continue to manage US user data and confirm that such data remains inaccessible from China.
The White House has become significantly involved in these high-profile negotiations, essentially acting as an investment bank.
Initially, Trump endorsed the idea of a ban during his first term but has recently vowed to "save TikTok" and keep the app operational in the US, attributing its significance to his prospects for the 2024 presidential election.
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Under the anticipated agreement, ByteDance would maintain a stake in the company, while data collection and software updates would be managed by Oracle, which already supports TikTok's infrastructure following an agreement arranged during Trump's first term.