TikTok’s 170 million US users will continue to gain access to the video-sharing platform under a new ownership structure that puts Oracle in charge of monitoring and retraining the powerful recommendation engine that determines what content appears on their feeds.
The reported arrangement is part of a deal to transfer TikTok from Chinese parent ByteDance to American investors, as reported by multiple media outlets citing a call with a White House official on Monday (September 22).
Oracle will oversee how the algorithm operates in the US to “ensure improper manipulation is prevented,” Bloomberg reported, citing the official.
The arrangement aims to preserve TikTok’s functionality while addressing national security concerns that almost led to its nationwide ban in the US.
Bloomberg’s report notes that a Q&A accompanying a White House official’s comments suggested that, “Oracle, the U.S. security partner, will operate, retrain, and continuously monitor the U.S. algorithm to ensure content is free from improper manipulation or surveillance”.
Oracle will also oversee “application development and source code review”, per the report citing a US government official.
The Oracle framework seeks to satisfy lawmakers who demanded a separation of TikTok US from ByteDance.
The plan comes as US President Donald Trump is expected to sign an executive order this week that would ensure that TikTok will be run by a new joint venture that is majority-owned by American investors, Fox News reported on Sunday (September 21), citing a senior White House official.
Under the framework, American investors will reportedly control more than 80% of TikTok’s US operations, while ByteDance’s stake will drop below 20%, as required by law. The Chinese company will reportedly hold only one seat on a seven-member board but will be excluded from the security committee and will not be eligible to serve as board chairman.
Trump revealed in an interview with Fox News, which aired on Sunday, that media mogul Rupert Murdoch, head of Fox News and News Corp, and Dell Technologies CEO and founder Michael Dell could be part of the joint venture.
Trump told Fox News’ The Sunday Briefing: “I think they’re going to be in the group. A couple of others. Really great people, very prominent people… And they’re also American patriots, you know, they love this country. I think they’re going to do a really good job.”
The president also noted that Oracle founder and Chairman Larry Ellison is also joining the deal. Bloomberg previously reported that Oracle is among the investors in a consortium that includes venture capital firms Andreessen Horowitz and Silver Lake Management.
The algorithm arrangement addresses one of the most crucial aspects of any TikTok sale. US law bans ByteDance from maintaining control over the recommendation software that determines what videos users see, while Republicans and Democrats have argued that China could pressure ByteDance into sharing user data and using that data to spread Chinese propaganda.
The approach builds on Oracle’s existing relationship with TikTok through Project Texas, a multibillion-dollar partnership to store US user data at home. That effort, led by Ellison, failed to satisfy regulators’ security concerns and was never formally approved.
“We are 100% confident that a deal is done.”
Karoline Leavitt, White HOuse Press Secretary
However, critics question whether the new framework separates TikTok from Chinese influence. Representative John Moolenaar, the Republican chairman of the House Select Committee on China, said last week that he remained concerned it “may involve ongoing reliance by the new TikTok on a ByteDance algorithm and application that could allow continued CCP control or influence.”
The success of a TikTok deal depends on approvals from both US and Chinese governments. On Friday (September 20), Trump expressed confidence after speaking with Chinese President Xi Jinping, telling reporters: “He approved the TikTok deal… The TikTok deal is well on its way.”
However, China’s statement on the matter did not mention a formal agreement on TikTok. China’s Ministry of Foreign Affairs wrote on Thursday (September 19) in Beijing: “China’s position on the TikTok issue is clear: The Chinese government respects the wishes of the company in question, and would be happy to see productive commercial negotiations in keeping with market rules lead to a solution that complies with China’s laws and regulations and takes into account the interests of both sides.”
“China’s position on the TikTok issue is clear: The Chinese government respects the wishes of the company in question, and would be happy to see productive commercial negotiations…”
China’s Ministry of Foreign Affairs
Added the ministry: “The US side needs to provide an open, fair and non-discriminatory environment for Chinese investors… The U.S. will work with China on the economy and trade, and support their teams in reaching a proper deal on TikTok through consultation.”
On Monday, White House Press Secretary Karoline Leavitt said: “TikTok users in the US will be able to see videos posted by users in other countries and vice versa.” Leavitt previously said on Saturday that “We are 100% confident that a deal is done,” adding that a deal would likely be signed “in the coming days.”
