TikTok has signed a landmark agreement to establish a new United States-based operating unit, bringing in major American investors including Oracle and private equity firm Silver Lake, in a move aimed at resolving long-running national security and regulatory concerns.
According to sources familiar with the deal, the new entity will oversee TikTok’s U.S. operations and data management, placing greater control in the hands of U.S. stakeholders. Oracle is expected to play a central role in data security and cloud infrastructure, while Silver Lake joins as a strategic financial investor. The arrangement is designed to ensure that American user data is stored and managed domestically under strict oversight.
The deal represents a significant shift in TikTok’s corporate structure as it faces increasing pressure from U.S. lawmakers who have raised concerns about the app’s Chinese ownership and the potential for foreign government influence. By creating a distinct U.S. unit with prominent American partners, TikTok is seeking to demonstrate independence, transparency, and compliance with U.S. regulations.
Under the proposed structure, TikTok’s parent company would retain a minority stake, while U.S. investors would collectively hold a substantial ownership share. Governance measures are expected to include a U.S.-based board, enhanced compliance controls, and clear limitations on foreign access to sensitive data and algorithms tied to American users.
Oracle’s involvement builds on its existing relationship with TikTok as a trusted technology partner. The company is expected to expand its responsibilities to include auditing systems, securing data flows, and ensuring that U.S. user information is shielded from unauthorized access. Silver Lake’s participation adds financial credibility and experience in navigating complex regulatory environments.
The agreement comes at a critical moment for TikTok, which has faced the prospect of bans, forced divestment, or severe operational restrictions in the United States. Industry analysts say the deal could serve as a template for how global technology companies restructure to meet national security demands without fully exiting major markets.
While the agreement marks a major step forward, it still requires regulatory review and political approval. Some lawmakers have signaled cautious optimism, while others argue that stricter measures may still be necessary. TikTok has maintained that it has never shared U.S. user data improperly and views the new structure as proof of its commitment to user safety and legal compliance.
If finalized, the creation of a new U.S. unit could stabilize TikTok’s future in its largest and most lucrative market, reassuring advertisers, creators, and millions of users who rely on the platform daily. The outcome may also influence how other foreign-owned tech companies navigate rising geopolitical scrutiny in the digital economy.
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