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Investing.com -- TikTok’s US business would be controlled by an investor consortium including Oracle, Silver Lake and Andreessen Horowitz under a framework being finalized by US and Chinese officials, according to a Wall Street Journal report.
The arrangement, which was discussed by negotiators from both countries in Madrid this week, would establish a new US entity to operate the app. US investors would hold approximately 80% stake while Chinese shareholders would own the remaining 20%, according to people familiar with the matter.
The proposed structure would include an American-dominated board with one member designated by the US government. Existing US users would transition to a new app that TikTok has built and is currently testing.
TikTok engineers plan to recreate content-recommendation algorithms for the app using technology licensed from parent company ByteDance. Oracle would manage user data at its facilities in Texas.
This new framework shares similarities with an earlier deal reported by Reuters that was being worked on in April.
The final details of the proposed deal are still being worked out and terms could change.