TikTok's Future Secured in US: Oracle to Lead Security, New Company Formed
TikTok's future in the US has been secured with a new agreement. Oracle has been chosen as the app's security provider, hosting US user data and overseeing key operations. A new American-led company will manage TikTok's US operations, with Oracle's founder, Larry Ellison, playing a significant role.
The deal, authorised by President Trump, involves a new joint venture company based in the US. This company will manage TikTok's US operations, with a valuation of around $14bn. US investors will hold the majority stake, while ByteDance's ownership will be less than 20%.
Oracle will take on a crucial role, hosting all US user data on its infrastructure and providing security for the app. The agreement also transfers control of TikTok's US algorithm, source code, and content moderation processes to the new company. All recommendation models using US user data must be retrained and monitored by approved US security entities.
The White House estimates that TikTok's continued operations could generate $178bn in US economic activity over four years and support thousands of jobs. The Attorney General has agreed to delay enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act for 120 days to facilitate this transition.
With this agreement, TikTok's US operations will be managed by a new company led by American interests. Oracle's involvement ensures robust security measures for US user data. The deal is expected to bring significant economic benefits to the US, with President Trump expressing his belief in the app's potential for growth and job creation.
