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The US Will Not Hold Equity in TikTok’s American Operations

By  |  September 22, 2025

The United States government will not take a golden share or direct ownership stake in the new company set to oversee TikTok’s American business, according to Bloomberg. A White House official clarified the arrangement during a press briefing, emphasizing that Washington will not appoint any members to the company’s board.

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    The deal follows months of negotiations between Washington and Beijing over the video-sharing platform’s future. Per Bloomberg, the structure involves Oracle Corp. and Silver Lake Management LLC joining a consortium of U.S. investors. Under the proposal, ByteDance Ltd., TikTok’s Chinese parent, will see its ownership reduced to less than 20 percent. The plan would also ensure that Americans hold six of the seven board seats. Final details regarding investors are still being worked out.

    The agreement reflects efforts to meet U.S. national security requirements, which mandate a reduction of Chinese influence in TikTok’s U.S. operations. According to Bloomberg, the spin-off plan would create a company majority-owned and controlled by American interests, with participation from both existing investors and new entrants.

    Related: TikTok Agreement Gives ByteDance One Seat on US Board

    The decision not to use a golden share stands in contrast to other moves by President Donald Trump in recent months. As Bloomberg noted, Trump has pushed for the government to play a direct role in private companies, including taking an equity position in Intel Corp. and securing a golden share in United States Steel Corp. after its acquisition by Japan’s Nippon Steel. Golden shares, more common in other countries, give governments a say in key corporate decisions.

    Despite clarifying the ownership structure, several aspects remain unresolved. The valuation of TikTok was described only as being worth “many billions of dollars.” Investors will have 120 days to finalize the transaction once Trump issues an expected executive order later this week. The order will initiate the process of drafting legal and regulatory documents necessary to complete the deal.

    Source: Bloomberg