Oracle takes control of data security and moderation while ByteDance retains a lucrative interest amid ongoing US-China tech tensions.
ByteDance, a China-based tech giant, will receive 50% of TikTok’s US profits under a deal approved by President Trump. The arrangement allows the Chinese company to maintain significant financial interest in the popular short-video app despite divesting majority ownership to American investors.
The deal values TikTok’s US operations at approximately $14 billion, with ByteDance’s stake reduced to under 20% while licensing its algorithm to the new American-owned venture.
Oracle has been placed in charge of securing US user data and overseeing content moderation in the new TikTok US venture as part of the deal’s security provisions. The restructuring allows TikTok to continue operating in the US while addressing national security concerns about Chinese ownership of the platform.
