TikTok to Spin Off U.S. Operations to Oracle-Led Consortium Amid Regulatory Resolution

After a year of negotiations, the U.S. government and TikTok’s parent company, ByteDance, are on the verge of finalizing a deal to separate the social media platform’s operations in the United States. Under the proposed arrangement, a new consortium led by Oracle will take control of TikTok’s U.S. business, marking a significant milestone in a protracted regulatory process.

The agreement is expected to satisfy concerns over data security and national security raised by U.S. officials. By transferring the U.S. operations to an Oracle-led group, the deal aims to ensure compliance with American laws while allowing TikTok to maintain its presence in the market. Oracle, a major player in enterprise software and cloud infrastructure, will serve as the lead entity in the consortium, which will operate the U.S. version of the app independently.

The spin-off reflects a broader trend of heightened scrutiny over technology platforms with foreign ownership. Over the past year, multiple proposals and regulatory challenges have shaped the path to this near-final resolution. The current deal is the result of a complex balancing act, addressing both the need to protect user data and the desire to preserve the commercial value of the platform in one of its most important markets.

While the exact terms of the transaction remain under negotiation, the structure suggests a model where Oracle will hold a significant role in managing TikTok’s U.S. operations. This approach aligns with previous precedents where U.S. tech firms have collaborated with foreign entities to navigate regulatory hurdles while maintaining operational control.

The resolution is expected to bring closure to a high-stakes regulatory standoff that has drawn attention from policymakers, investors, and users alike. With the final approval likely imminent, the deal could set a precedent for how similar cross-border technology ventures are handled in the future.

The timeline of the negotiations highlights the complexity of aligning interests across different jurisdictions. From initial concerns raised in 2024 to the current near-agreement in September 2025, the process has involved multiple reviews and revisions to meet regulatory expectations. This development underscores the evolving landscape for international technology firms and the increasing importance of data governance in global operations.

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