White House leads TikTok acquisition deal

• Published On: 22 March 2025 at 18:54

The White House is leading negotiations on TikTok's future, with discussions centred on a plan for major US investors in parent company ByteDance to increase their stakes and acquire the app's US operations, according to sources familiar with the talks.

The proposed transaction would establish a separate US entity for TikTok, lowering Chinese ownership below the 20% threshold required by US law. This move seeks to avoid a nationwide ban on the popular video-sharing platform, which has come under fire for national security concerns.

Susquehanna International Group and General Atlantic, both members of ByteDance's board, are leading the discussions alongside the White House. One source confirmed that private equity firm KKR is involved as well. The discussions follow legislation passed last year that required ByteDance to sell TikTok or face a US ban over concerns about Chinese government influence.

Critics argue that the ban would violate free speech rights under the First Amendment, while TikTok maintains that it operates independently of Beijing. The company has stated that its recommendation algorithm and U.S. user data are stored on Oracle cloud servers, and content moderation decisions are made in the United States.

According to sources, under the proposed agreement, Oracle would continue to manage US user data while ensuring that it is inaccessible to Chinese authorities. According to the Financial Times, other investors, including Coatue, are involved in the talks.

President Donald Trump, who initially supported banning TikTok, postponed enforcement of the law after retaking office in 2025. He has since proposed extending the deadline to negotiate a deal. Other investor groups, led by billionaire Frank McCourt and YouTube star MrBeast, have expressed interest in acquiring TikTok's US operations.