TikTok Deal Will See Oracle Oversee Algorithm

The ongoing tug-of-war over TikTok's fate in the US appears to be nearing a resolution, and users shouldn't need to swap apps anytime soon. After months of back-and-forth between the Trump administration and China, a preliminary agreement has emerged that will involve Oracle overseeing TikTok's algorithm, outlets including the Wall Street Journal, CNN, and the AP report, citing a senior White House official.

• Under the proposed deal, a new US-based entity would control TikTok's American operations. Oracle and private equity firm Silver Lake, among other US investors, are set to hold about half the company, with existing stakeholders retaining roughly 30%. TikTok parent ByteDance's share would shrink below 20% to comply with a new law requiring either a sale or a US shutdown by 2024.
• President Trump said Sunday that the new ownership could include Rupert and Lachlan Murdoch. A source tells CNN that Trump was referring to Fox Corp., not the individual Murdochs.

• The heart of the arrangement centers on TikTok's influential content algorithm. ByteDance would lease a copy of the algorithm to the new company, which would be retrained under Oracle's and the US government's watchful eyes. This move is meant to ease longstanding concerns in Washington that China could shape what nearly 170 million Americans see on TikTok. "It wouldn't be in compliance if the algorithm is Chinese. There can't be any shared algorithm with ByteDance," a spokesperson for the House Select Committee on China tells the AP.
• Oracle, co-founded by Trump ally Larry Ellison, would continue handling American user data, which China would be unable to access. The US government, meanwhile, stands to collect a multibillion-dollar fee for brokering the deal, a feature raising eyebrows among legal and ethics experts.
• White House press secretary Karoline Leavitt said Monday that the change won't affect users' experience. "TikTok users in the US will be able to see videos posted by users in other countries and vice versa," she said.
• The finish line isn't in sight yet: final approvals, legal checks, and a finalized investor roster remain. Beijing, for its part, says it'll review the deal under its own regulations. As for the timeline, Trump is tacking on another 120 days to the ever-shifting deadline, the Journal reports, giving all parties more time to iron out the details. Trump extended the deadline by 90 days last week.