US Rejects Golden Share in TikTok Deal, Board to Stay Private

TLDRs;

• The U.S. will not take equity or a golden share in TikTok’s American operations under the new deal.
• A majority-American board will govern TikTok US, with ByteDance keeping less than a 20% minority stake.
• Oracle will monitor TikTok’s algorithm and data flows to safeguard U.S. national security concerns.
• Trump extended TikTok’s divest-or-ban deadline by 120 days, pushing final approval into early 2026.

The White House has confirmed that the United States government will not hold an equity stake or so-called “golden share” in the newly structured TikTok US entity, opting instead for a private-sector-driven model with strict oversight.

The decision marks a clear departure from earlier speculation that Washington might demand a special stake or veto power in TikTok’s U.S. operations.

Such an arrangement would have mirrored other deals struck under the Trump administration, where the government has taken golden shares in strategic companies such as U.S. Steel. Instead, the new arrangement focuses on ensuring American control without direct government interference.

Americans to Lead TikTok US Board

According to officials, TikTok’s U.S. business will be spun into a joint venture headquartered in the United States. The board of directors will be composed mostly of American members, with six of the seven seats reserved for U.S. citizens.

Importantly, no directors will be appointed by the federal government, ensuring the board remains a private-sector entity rather than a quasi-state-controlled body.

The investor group leading the takeover is expected to include Oracle, private equity giant Silver Lake, and other institutional investors. ByteDance, TikTok’s Beijing-based parent company, will retain a stake below 20% to comply with U.S. national security requirements.

Oracle to Safeguard Algorithm and Data

One of the most sensitive elements of the deal concerns TikTok’s powerful recommendation algorithm, the engine that drives its global popularity but also sparked national security concerns. U.S. lawmakers have long worried that ByteDance could be pressured by Beijing to manipulate TikTok’s algorithm, amplifying disinformation or censoring content.

Under the proposed arrangement, Oracle will take charge of monitoring TikTok’s algorithm within the United States. The tech giant will review a copy of the recommendation code, retrain it on U.S. user data, and continuously oversee how it serves content to American users. This move is designed to ensure transparency and block potential influence from foreign actors.

Oracle already plays a role in TikTok’s U.S. operations through its data-hosting partnership. The new agreement expands that role significantly, giving Oracle deeper access and oversight responsibilities.

Trump Extends Deadline for Sale

President Donald Trump is expected to issue an executive order later this week to extend the deadline for TikTok’s divestment or ban. The new extension will give investors 120 additional days to finalize regulatory approvals and secure the paperwork needed to complete the transaction.

Trump, who has described TikTok as an app he personally enjoys, has repeatedly delayed the ban deadline since signing the divest-or-ban law last year. The most recent extension pushes the enforcement date to mid-December, with the expectation that the deal could be finalized early next year.

ByteDance Retains a Minority Stake

While American investors will control the majority, ByteDance will remain involved with TikTok US through a minority stake capped below 20%.

The Chinese parent will not have authority over content moderation or the U.S. algorithm. However, Beijing’s approval remains a key hurdle, as China has its own regulations on technology transfers and may scrutinize the algorithm handover.

The TikTok saga highlights Washington’s increasingly assertive stance toward Chinese-owned technology platforms. With national security, user privacy, and global influence at stake, the deal will set a precedent for how the U.S. handles future foreign-owned digital platforms operating within its borders.

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