TikTok Receives Fourth Extension as Oracle Deal Framework Emerges

TikTok has received its fourth deadline extension from the Trump administration, pushing the enforcement of the divestiture-or-ban law to December 16, 2025, as negotiations intensify around a framework deal that would create a U.S.-controlled version of the popular video platform. The agreement, announced following discussions between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, would establish American control over TikTok’s U.S. operations while allowing ByteDance to retain a minority stake.

Under the proposed framework, a consortium including Oracle Corp., venture capital firm Andreessen Horowitz, and private equity firm Silver Lake Management would control approximately 80% of TikTok’s U.S. business, with ByteDance maintaining less than 20% ownership. Oracle would continue managing user data at its Texas facilities while taking an equity position in the restructured company, extending its existing Project Texas partnership.

Deal structure and implications:

• Current TikTok users would migrate to a new application currently being tested by TikTok engineers https://www.reuters.com/world/china/oracle-silver-lake-consortium-control-80-stake-tiktok-us-wsj-reports-2025-09-16/
• ByteDance would license its proprietary recommendation algorithm to the new U.S. entity while maintaining intellectual property rights
• Oracle’s existing cloud services and data hosting responsibilities would continue under American oversight
• The framework requires approval from both U.S. and Chinese authorities within 30-45 days
• Larry Ellison’s political connections and media investments provide additional regulatory support
• The December 16 extension preserves TikTok operations throughout the crucial holiday shopping season

The TikTok framework deal removes regulatory uncertainty while preserving the platform’s marketing value, potentially enhancing advertiser confidence through American control structure and maintained algorithm-driven engagement.