U.S. Investors Proposed to Acquire 80% Stake in TikTok

International Desk | PNN
A new draft agreement has been proposed to prevent TikTok from being banned in the United States. Under this plan, U.S.-based venture capital firms, private equity funds, and tech companies would invest in a new U.S.-based entity that will operate the app domestically.

Diplomatic sources indicate that a consensus on this structure has been reached between U.S. and Chinese negotiators in Madrid. According to the proposed deal, U.S. investors would hold approximately 80% of the shares, while the remaining portion would belong to Chinese shareholders. Names such as Oracle, Andreessen Horowitz, and Silver Lake have already been mentioned among the potential investors.

The agreement also stipulates that the new company’s board of directors will include U.S. influence, with a member appointed by the Trump administration.

The TikTok deal has not been finalized yet. A formal decision may be made during a scheduled phone call between President Donald Trump and Chinese President Xi Jinping on Friday.

On Tuesday, Trump issued an executive order extending the TikTok ban deadline by three months to prevent the app from being shut down in the U.S. before negotiations conclude. Trump had previously extended the ban deadline three times.

U.S. Treasury Secretary Steven Mnuchin stated that although China initially took a tough stance, they agreed to negotiations after Trump’s direct warning. Mnuchin said, “Trump was ready to let TikTok go dark—this message changed the pace of the talks.”

He added that U.S. national security concerns were not compromised, but the agreement includes provisions that do not impact national security.

If completed, the TikTok deal would not only determine the future of the app but could also pave the way for a Trump-Xi meeting, expected to take place next month.