TikTok Says Its Reached a US-Majority Ownership Deal - bloomberg-technology Recap

Podcast: bloomberg-technology

Published: 2025-12-19

Duration: 40 minutes

Guests: Kevin Mayer, Amy Webb

Summary

TikTok is restructuring with a US-majority ownership, with Oracle securing US user data. The deal aims to address security concerns and maintain global interoperability.

What Happened

TikTok has finalized agreements for a new joint venture in the US, where ByteDance will retain less than 20% ownership. The new entity will have a US board and operate as a separate entity. Oracle will take a 15% stake and be responsible for securing US user data, drawing parallels to an earlier proposal known as Project Texas, which US regulators previously rejected.

Kevin Mayer, former CEO of TikTok, expressed confidence in the operational viability of the new structure, emphasizing the importance of maintaining the original algorithm for effective AI recommendations. He also highlighted ByteDance's continued role in commercializing TikTok through advertising and e-commerce.

The new US-based TikTok will remain interoperable with other global TikTok instances, allowing users access to global content. Despite these changes, concerns persist about ByteDance's involvement and profit-sharing in the new structure, as well as the need for Chinese government approval for the deal to proceed.

Oracle's involvement is seen as a strategic move to enhance its business model, particularly in securing data. This aligns with broader trends in the media landscape, where platforms like TikTok and YouTube are driving the popularity of short-form content.

Amy Webb from the Future Today Institute noted that the US-China tech relationship remains complex, with TikTok being a significant point of tension. She emphasized China's investments in infrastructure and its advancements in AI and telecommunications, underscoring the need for the US to adopt a coordinated approach to technology and competitiveness.

In the realm of AI, significant investments are scrutinized for ROI, with a focus on balancing sheets and cash generation. Private markets are experiencing growth in AI applications, with startups reaching substantial revenue milestones faster than in the past.

Key Insights

• TikTok's new US-based entity will have a US board and operate separately from ByteDance, with ByteDance retaining less than 20% ownership. Oracle will hold a 15% stake and manage the security of US user data.
• Despite the restructuring, TikTok's US entity will remain interoperable with other global TikTok platforms, allowing users to access a wide range of international content.
• Oracle's involvement in TikTok's US operations aligns with its strategic focus on enhancing its data security business model, reflecting a broader trend in the media industry towards securing user data.
• The US-China technology relationship remains complex, with TikTok being a focal point of tension. China's advancements in AI and telecommunications highlight the need for the US to adopt a coordinated approach to technology and competitiveness.