JAKARTA - White House-led talks about TikTok's future lead to plans for ByteDance's biggest non-China investors to increase their holdings and acquire operations for the short video app in the US.
The plan includes splitting TikTok as a US entity and reducing Chinese ownership in the new business to below the 20 percent threshold required by US law. The move aims to save TikTok from the threat of ban in the US, said a source who asked not to be named because he was not authorized to speak officially.
According to the source, Jeff Yass of the Susquehanna International Group and General Atlantic's Bill Ford, both of whom have representatives on the board of directors of ByteDance, led discussions with the White House over this plan. Private equity firm KKR also took part in the talks, according to one of the sources.
The fate of TikTok, which is used by nearly half of the US population, is uncertain since the law came into effect on January 19 requiring ByteDance to sell the app or face bans for national security reasons.
The law passed last year with bipartisan support reflects concerns in Washington that TikTok's holdings could see it subject to the Chinese government, potentially using the app for influence operations against the US.
However, supporters of freedom of speech argued that the ban illegally restricted US citizens' access to foreign media and violated the First Amendment to the US Constitution.
TikTok denies the allegations, saying US officials have misunderstood their relationship with China. The company stated that the US user's content and data recommendation system is stored on Oracle's cloud server in the US, while a content moderation decision affecting American users was also made in the US.
Under the plan put forward by existing ByteDance investors, Oracle will remain a data infrastructure provider for TikTok in the US and ensure that user data cannot be accessed from China, according to one source.
Representatives from TikTok, ByteDance, Susquehanna, Oracle, and the White House have not been able to be reached for comment. Meanwhile, General Atlantic and KKR declined to comment.
The Financial Times previously reported that US-based ByteDance investors were trying to buy shares of Chinese investors in a US TikTok split agreement, with investment firm Coatue also involved in talks. Coatue has not yet responded to requests for comment from the media.
US President Donald Trump previously postponed the implementation of the ban on TikTok until April 5 after taking office, and last month stated the possibility of further extensions to provide time to finalize the deal.
According to a legal document filed by TikTok last year, about 58% of ByteDance's shares are owned by global investors, while Chinese founder ByteDance Zhang Yiming owns 21%, and employees from various countries including about 7,000 US citizens hold the remaining 21%.
The White House plays an unprecedented role in this negotiation, functioning like an investment bank.
Trump initially supported the ban on TikTok during his first term of office, but in recent months pledged to "accompany TikTok" and maintain the app in the US, claiming that TikTok helped him win the 2024 election.
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TikTok had experienced a brief blackout in the US before returning to service after Trump signed an executive order delaying the 75-day ban.
Earlier this month, Trump said his government was communicating with four different groups about TikTok's potential deal, without revealing their identities.
Other groups interested in acquiring TikTok include billionaire investor Frank McCort and the team involving YouTube star Jimmy Donaldson, better known as Mr. Beast.
In January, Reuters and other media reported that the Trump administration was working on plans for TikTok involving Oracle and several existing ByteDance investors to take control of the app's operations.
Under this potential deal, ByteDance will still retain some of its shares on TikTok, but data collection and software updates will be overseen by Oracle, which is currently the backbone of TikTok's infrastructure in the US through a deal negotiated during Trump's first term.
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