(Reuters)-Tiktok operations in the United States will be controlled by an investor consortium that includes Oracle, Silver Lake and Andreessen Horowitz, according to a structure that the US and China are finishing, the Wall Street Journal said on Tuesday, quoting people familiar with the subject.
A new company will be created to operate Tiktok, with US investors holding a stake of approximately 80% and Chinese shareholders holding the rest, according to the report. The company will also have a board of directors dominated by Americans, with a member designated by the US government.
Current application users will be asked to move to a new app that Tiktok has created and is testing, the newspaper said.
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Reuters reported in July that Tiktok was preparing to launch an independent application for US users, which should operate on a separate algorithm and data system from its global application.
Oracle will deal with user data at its Texas facilities, the WSJ said, adding that while the US and China are still working on the details of the possible agreement, the terms may change.
Tiktok, Oracle, Silver Lake and Andreessen Horowitz – also known as A16Z – did not immediately respond to Reuters’ comments requests.
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US President Donald Trump signed a decree on Tuesday postponing the application of a 2024 law that requires the alienation of Tiktok’s Chinese property by 16 December.
He also announced an agreement between the US and China to maintain operational Tiktok in the country.
