A group of investors led by Oracle and private equity firm Silver Lake is set to acquire a roughly 50 percent stake in TikTok U.S., according to a source familiar with the matter.
The move marks a significant shift in control of the popular video sharing app as pressure from Washington to cut ties with its Chinese parent ByteDance comes to a head.
The deal will see existing shareholders in ByteDance retain about 30 percent of TikTok U.S., among them major investors such as Susquehanna International Group, General Atlantic and KKR.
Oracle and Silver Lake did not immediately respond to requests for comment, but the agreement is expected to be finalised once President Donald Trump signs off, possibly later on Thursday.
A senior White House official said that under the arrangement ByteDance would hold less than 20 percent of the new company, meeting the requirements of a 2024 law mandating the divestment of Chinese ownership or risk a ban by January 2025.
Americans will occupy six of the seven board seats, with ByteDance appointing only one director.
The restructuring follows months of uncertainty for TikTok in the U.S., where officials have repeatedly raised concerns about data security and influence from Beijing.
The app’s future has been closely watched by investors as well as its vast American user base.
CNBC reported that Abu Dhabi based artificial intelligence investment firm MGX will join Oracle and Silver Lake as a key investor, with the three groups together holding about 45 percent.
MGX, a partner of Silver Lake, operates under the purview of Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser.
While the final ownership structure could shift as talks continue, the deal represents a decisive effort to anchor TikTok U.S. firmly under American control.
