TikTok, owned by the Chinese company ByteDance, has been at the center of controversy in the U.S. for four years now due to concerns about user data potentially being accessed by the Chinese government.

As a result, U.S. users have often found themselves caught in the middle of this tension. Earlier this year, the app experienced a temporary outage in the U.S. that left millions of users in suspense before it was quickly restored. TikTok returned to the App Store and Google Play Store in February. 

A number of investors are competing for the opportunity to purchase the app, and if a deal were to go through, the platform’s U.S. business could have its valuation soar to upward of $60 billion, as estimated by CFRA Research’s senior vice president, Angelo Zino.

Following extensive discussions and after Trump extended the TikTok ban deadline for the fourth time, it seems that progress has been made. Last week, President Trump announced that President Xi of China had given his approval of a TikTok deal, which would allow a consortium of U.S. investors to control the platform. ByteDance stated publicly that it would ensure the platform remains available to American users.

Recently, a “framework” deal was reportedly established between the U.S. and China, with new information revealed indicating that a consortium of investors, including Oracle, Silver Lake, and Andreessen Horowitz, may oversee TikTok’s U.S. operations.

These investors are expected to hold an 80% stake, and the remaining shares will belong to Chinese stakeholders. The new entity’s board would predominantly consist of U.S. members, with one member appointed by the U.S. government.

Over the weekend, Trump mentioned in a Fox interview that Rupert Murdoch and his son Lachlan are “probably” going to play a role, along with Oracle’s executive chairman Larry Ellison and Dell Technologies CEO Michael Dell.

Oracle is likely to handle the app’s security and safety measures. The company already provides cloud services for TikTok and manages user data in the U.S. Notably, Oracle previously made a bid for TikTok back in 2020.

Additionally, as part of the proposed arrangement, Oracle would replicate and secure a new U.S. version of the algorithm, according to a White House official. The U.S.-based TikTok owners could lease the algorithm from ByteDance, which Oracle will then retrain. 

ByteDance will not have access to information about TikTok’s U.S. users or any influence over the U.S. algorithm.

Reports from Bloomberg indicate that when the deal is finalized, the TikTok app will be discontinued in the U.S. and users will need to transition to a new platform. However, the specifics of this platform remain largely unclear, including its features and how it will differ from the original app. 

To fully understand this high-stakes drama, we’ll first revisit the timeline of TikTok’s tumultuous relationship with the U.S. government, which resulted in various legal battles and negotiations. 

The drama first began in August 2020, when Trump signed an executive order to ban transactions with parent company ByteDance. 

A month later, Trump’s administration sought to force a sale of TikTok’s U.S. operations to a U.S.-based company. The leading contenders included Microsoft, Oracle, and Walmart. However, a U.S. judge temporarily blocked Trump’s executive order, allowing TikTok to continue operating while the legal battle unfolded. 

Things began to progress even more last year following the transition to the Biden administration.  After the Senate passed the bill against TikTok, President Joe Biden signed it.

In response, TikTok sued the U.S. government, challenging the constitutionality of the ban and arguing the app and its American users were having their First Amendment rights violated. The company has consistently denied that it poses a security threat, asserting that its data stored in the U.S. complies with all local laws.

Fast forward to today: Trump has had a change of heart since his first term and is trying to achieve a 50-50 ownership arrangement between ByteDance and a U.S. company. 

There have been several contenders, including The People’s Bid for TikTok , a consortium organized by Project Liberty founder Frank McCourt. This group has the support of investment firm Guggenheim Securities and the law firm Kirkland & Ellis. Supporters include Reddit co-founder Alexis Ohanian, TV personality and investor Kevin O’Leary, inventor of the World Wide Web Tim Berners-Lee, and senior research scientist David Clark.

Another group, called the American Investor Consortium, is led by Employer.com founder Jesse Tinsley and includes Roblox co-founder David Baszucki, Anchorage Digital co-founder Nathan McCauley, and famous YouTuber MrBeast.

Others in the running included Amazon, AppLovin, Microsoft, Perplexity AI, Rumble, Walmart, Zoop, former Activision CEO Bobby Kotick, and former U.S. Treasury Secretary Steven Mnuchin.

The story has been updated after publication.