Discussions surrounding the future of TikTok are gaining momentum, with the leading non-Chinese investors in its parent company ByteDance taking the reins in talks with the White House. The proposed plan involves spinning off TikTok’s U.S. operations into a separate entity while reducing Chinese ownership to below 20% to meet U.S. legal requirements and avoid a potential ban.
Key figures in the talks include Jeff Yass’ Susquehanna International Group and Bill Ford’s General Atlantic, both of which have stakes in ByteDance and sit on its board. Private equity firm KKR is also reportedly involved in the negotiations. The proposed spin-off would see these investors increase their stakes, and software giant Oracle would continue managing U.S. user data, ensuring it remains inaccessible to Chinese authorities.
This plan follows a law passed in January that mandates ByteDance either sell TikTok or face a national security ban, citing concerns over the app’s ties to the Chinese government. While TikTok has defended its operations, emphasizing the independence of its U.S. data storage and content moderation practices, the law reflects broader concerns in Washington about potential influence operations through the app.
The ongoing discussions have significant implications for TikTok’s future in the U.S., where nearly half of Americans use the app. With the deadline for compliance set for April 5, U.S. investors are moving quickly to finalize the deal, which could potentially reshape the app’s ownership structure while addressing security concerns.
