Oracle and Andreessen Horowitz to Control TikTok’s U.S. Operations
UPDATE: A powerful investor group led by Oracle, Silver Lake, and Marc Andreessen’s venture capital firm has secured a controlling stake in TikTok’s new U.S. operations, according to a report by the Wall Street Journal just released today. This significant development comes as former President Donald Trump confirmed that a deal was reached to keep the widely popular China-based app operational in the United States.
The newly formed U.S. entity will operate TikTok with an estimated 80% of its shares owned by American investors, while Chinese shareholders will retain the remaining stake. Under this agreement, Oracle will manage user data within its facilities in Texas, ensuring compliance with U.S. regulations.
According to sources familiar with the negotiations, the board of this new company will predominantly consist of American members, along with one representative appointed by the U.S. government. This structure aims to enhance national security concerns surrounding data privacy and user information management.
Joining Oracle and Andreessen Horowitz in this venture are other prominent investors, including Susquehanna International, KKR, and General Atlantic, all of whom are existing investors in TikTok’s parent company, ByteDance.
The implications of this deal are profound, not only shaking up the tech landscape but also having significant ramifications for TikTok users across the nation. As social media platforms face increased scrutiny over data security, this restructuring is expected to bolster user confidence and maintain TikTok’s vast user base in the U.S.
Larry Ellison, at the age of 80, is experiencing a resurgence in his career as Oracle reports considerable gains this year. His leadership in this deal further cements his influence in both technology and investment sectors, especially as he vies for the title of the world’s richest person against Elon Musk.
This is a developing story, and further updates are anticipated as details emerge. Keep an eye on this space for the latest developments regarding TikTok’s operations in the U.S. and what this could mean for users and stakeholders alike.
