US Government Won’t Have Any Take Equity Stake In TikTok’s New American Entity: Report

The U.S. government will reportedly hold no equity stake, or ‘golden share,’ in the new entity that will oversee TikTok’s operations in the country.

A White House official told Bloomberg on Monday that the revamped board will not include a member selected by the U.S. government. They stated that the consortium set to run TikTok U.S. will consist of Oracle (ORCL) and private equity firm Silver Lake Management. 

Meanwhile, ByteDance, TikTok’s current owner, would see its stake fall below 20% to comply with national security requirements, the report added. Retail sentiment around Bytedance on Stocktwits was in ‘bearish’ territory even as chatter was at ‘high’ levels.

The official stated that, under the proposed structure, U.S. citizens are expected to occupy six of the seven board seats, adding that the full roster of investors has not yet been finalized. They also did not disclose the final valuation, describing it only as “many billions of dollars.”

There was speculation that the Trump administration might take a stake in the company, following previous investments this year in Intel (INTC), U.S. Steel (X), and MP Materials (MP), as well as its brokered deal with chipmakers Nvidia (NVDA) and AMD (AMD) to secure 15% of revenue from their chip sales to China.

The official clarified that Oracle would rebuild and secure the U.S. version of TikTok’s algorithm, leasing a copy from ByteDance and retraining it “from the ground up” to prevent manipulation or foreign surveillance. According to them, Oracle would also manage U.S. user data on a secure cloud designed to block access by foreign adversaries, including China. The official stated that ByteDance would have no control over the algorithm or U.S. subscriber data.

Oracle’s stock rose more than 3% in midday trade on Monday. Meanwhile, retail sentiment around the company on Stocktwits remained in ‘extremely bullish’ territory, accompanied by ‘high’ levels of chatter over the past day. 

President Donald Trump is expected to sign an executive order later this week approving the transaction, according to Press Secretary Karoline Leavitt. He may reportedly extend the deadline for ByteDance to divest by another 120 days, following a previous 90-day extension to mid-December. 

Read also: Strive To Merge With Semler Scientific, Boosts Bitcoin Holdings To Nearly 11,000 BTC

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