ChatGPT said:
A framework agreement for TikTok is set to involve both new investors and existing shareholders in the platform’s Chinese parent company, ByteDance. Sources familiar with the negotiations said the deal is expected to close within the next 30 to 45 days. As part of the arrangement, Oracle will maintain its cloud services agreement with TikTok, ensuring continued technological support for the platform’s U.S. operations.
The specifics of the deal, including its capitalization and investment size, remain unclear, but reports suggest the financial contributions to the U.S. entity may be relatively modest. It is not expected that the new TikTok entity will go public in the foreseeable future. Senior U.S. officials have refrained from confirming details, emphasizing that any information about the TikTok framework remains speculative until officially announced. TikTok and Oracle have not publicly commented on the matter.
TikTok’s future in the United States has been uncertain since Congress passed legislation in 2024 that would effectively ban the platform unless ByteDance divested from its American operations. Concerns over data security and the potential influence of the Chinese government on content have driven legislative and regulatory scrutiny. Negotiations to resolve these issues have been prolonged, with the U.S. government granting multiple extensions to ByteDance to finalize a compliant arrangement.
The framework deal comes after U.S. Treasury Secretary Scott Bessent confirmed that the United States and China reached an initial agreement on TikTok’s operational structure. Commercial terms for the framework had been in place since March or April, but progress stalled following trade tensions and tariff measures. Oracle has long been identified as a potential strategic partner for TikTok in the United States, with the company tasked to manage data and software updates if the framework is implemented. Oracle Chairman Larry Ellison has previously been mentioned as a possible buyer or investor for the platform.
The proposed structure aims to balance national security concerns with the continued operation of TikTok in the U.S., allowing the app to remain available to American users while addressing lawmakers’ fears regarding data access and content manipulation. The framework will likely ensure that American stakeholders, including technology partners and investors, have significant oversight over operations, data management, and user privacy. While negotiations have progressed, final approval and implementation will depend on regulatory review and the cooperation of all involved parties.
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