The Donald Trump-led US government is about to cash in big from the long saga over TikTok’s American future.
An exclusive report by The Wall Street Journal reported on Saturday that the Treasury is expecting a multibillion-dollar fee as part of the ownership shakeup designed to address years of security fears.
Oracle, the cloud giant, along with private equity backers, is set to take control of TikTok’s US operations, including its data and the algorithm that decides what users see.
ByteDance, TikTok’s Chinese parent, will stay on but with less power.
Data security drives TikTok deal
This deal is the result of years of back-and-forth drama. American officials have long worried that TikTok, under ByteDance, might share sensitive user info with Beijing.
They have considered banning the app outright, but instead settled on a plan that gives US regulators and investors a bigger say.
Oracle’s role is central as the tech giant is expected to manage TikTok’s American data storage and watch over its recommendation engine. The idea is to keep everything “in the US” and under American eyes.
The multi-billion-dollar fee could set a new precedent: governments asking foreign-owned tech companies not just to change hands but also to pay for the privilege of access.
It’s a bold move that reflects a tougher stance on security without shutting the door on innovation.
TikTok deal signals compromise approach
TikTok isn’t just a social app; it’s a symbol of the tense tech fight between the US and China.
With over 150 million American users, it has become part of the cultural fabric, but it has also triggered fears of Chinese influence and surveillance.
This deal tries to split that difference. It’s a new kind of compromise where the app stays, but under a new kind of supervision.
Leaders from both sides seem to support the deal, though it’s far from a done deal yet.
President Donald Trump and China’s Xi Jinping have given it a tentative thumbs-up, seeing it as a way to ease trade tensions and prevent a messy ban.
For ByteDance, it means scaling back control but staying in one of its biggest markets. For the US, it means more control and a hefty check.
This fee also says a lot about how tech and geopolitics are tangled today. It’s no longer just about business; it’s about national security, trust, and power.
How this new TikTok performs may well influence how the US deals with other Chinese tech players in the future.
The big question now is, will the new setup win over American users and regulators? Oracle will have to deliver on promises to keep data safe and content free from foreign interference.
If they do, this landmark deal could become a model for the digital age, where national interest and innovation have to find a new balance.
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