US investors in ByteDance explore TikTok deal to appease Trump - FT

Large American investors in TikTok owner ByteDance are exploring a deal with software giant Oracle to assure US President Donald Trump that the viral video app is not controlled by China, the Financial Times reports, UNN writes.

Details

According to the plan, ByteDance's existing sponsors, including General Atlantic, Susquehanna, KKR and Coatue, will seek to acquire additional stakes in TikTok's separated US business, according to several people familiar with the negotiations. Oracle could also potentially take a small stake in the business and protect the American app's data.

These financial institutions will seek to buy out Chinese investors from TikTok's American business, one source said.

However, ByteDance will seek to retain a stake in the American division of the app, another person said, adding that the exact structure of the deal remains uncertain and other investors may be involved.

The discussions come as TikTok faces an April 5 deadline for a federal law that would ban the app in the country if its Beijing-based owner does not sell the American division to non-Chinese organizations.

The law, which was introduced by Congress for national security reasons, initially came into effect in January, forcing the app to temporarily shut down for 170 million users in the US.

However, the app's service quickly recovered after Trump signed an executive order extending the deadline for the deal by 75 days and said he wanted the US to have a "50 percent stake in the joint venture."

According to one person familiar with the matter, ByteDance strongly prefers an Oracle-focused deal structure over others that are circulating. TikTok declined to comment.

Since Trump extended the deadline for the ban to take effect, the White House has taken the unusual role of mediator in any potential deal, inviting groups to submit potential bids for the TikTok US division.

Last week, Trump said his administration is now in talks with "four different groups" who are potential buyers.

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Any deal will require approval from Trump, as well as ByteDance and the Chinese government, which had previously threatened to block any deal, but has since softened its stance.

Oracle, co-founded by Trump ally Larry Ellison, has emerged as the leading contender, according to several people briefed on the matter. The software development group already struck a deal with TikTok in 2020, known as Project Texas, to store American users' personal data on its cloud servers in the US.

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Under the proposed deal with American investors, Oracle would provide security guarantees that American TikTok users' data would be safe. This would then allow ByteDance to continue to operate its highly sought-after algorithm, which was a key requirement of the Chinese government.

According to people, American investors are willing to increase their investment and support Oracle's proposal to protect their economic interests. In January, Bill Ford, chairman of General Atlantic and a member of ByteDance's board of directors, said he had a "sense of optimism" that a deal would be reached.

However, the full ownership structure remains unclear, such as whether ByteDance will retain access to TikTok's profits, according to one person familiar with the discussions.

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Other public contenders include Frank McCourt, an American media and sports businessman, and Reddit co-founder Alexis Ohanian, who have formed a consortium of investors to bid for TikTok through their non-profit organization Project Liberty.

Another bid was submitted to the White House by Reed Rasner, CEO of asset management company Omnivest Financial, a Wyoming billionaire.

Vice President J.D. Vance said last week that he expects a "high-level agreement" to be reached by the April 5 deadline.