TikTok Says Its Reached a US-Majority Ownership Deal

This is Bloomberg Tech. Coming up, TikTok’s new U.S. joint venture, former CEO Kevin Mayer at the top of the hour, and fresh headlines on OpenAI’s valuation; first, our top story—does the TikTok deal have the detail it needs with ByteDance dropping below twenty percent?

ByteDance would keep a small stake and license its recommendation engine to a U.S. TikTok that rebuilds on American user data, but the law says no operational role, so even limited ownership and algorithm licensing could draw questions.

Who else is at the table—Oracle at fifteen percent, plus private equity and Middle East money?

Oracle anchors U.S. data security under a Project Texas–style setup that regulators once felt fell short, and while Oracle only holds fifteen percent there are many hands in the pot, so we’ll see if anyone pushes back this time.

Kevin, you led TikTok and ByteDance; five years on, what do you make of this potential structure?

It can work operationally with Oracle safeguarding U.S. data and a licensed code base trained solely on American data, producing a distinctly U.S. feed while ByteDance sits under twenty percent and a U.S. board runs the business.

Will the product still feel great without heavy ByteDance involvement?

Keeping the core algorithm and retraining it on U.S. data should keep quality high and interoperability intact, which would have been far harder if they tried to rebuild from scratch.

Can it stay global if the U.S. piece is carved out?

It has to remain global, with Americans seeing worldwide content and vice versa, while the recommendation layer is trained on U.S. signals.

What about national security worries and profit sharing back to ByteDance?

ByteDance built the tech and earned some economics, and if Oracle walls off data and control, it addresses legitimate security concerns much like Project Texas would have.

Consumers seem less anxious now; is China’s sign-off the last real risk?

This feels like a durable fix and users will move on, but the Chinese government still needs to bless it, and early signals look supportive.

Zooming out, what is TikTok’s competitive place as short video reshapes media?

Short-form video now sits alongside Hollywood as a cultural engine, and the future blends YouTube, TikTok, and streaming with IP that scales across formats—our Moonbug and Cocomelon strategy shows that.

Do studio mergers worry you, and what about Disney?

Disney’s franchises are formidable, and a financially stronger, consolidated studio ecosystem could actually be better for creators even if it means fewer, healthier buyers; expect more bidding and likely a Warner-Paramount tie-up.

Oracle shares are rallying; can they fund the buildout and benefit from TikTok?

There’s worry about financing, but TikTok momentum and the Michigan data center suggest progress toward the multiyear revenue targets that require heavy infrastructure spend.

Markets have wrestled with AI doubts; what matters now?

The race is as much about balance sheets and visible cash tied to AI as it is about innovation, because investors want proof while companies still need to spend to capture growth.

Investors are getting picky.

The tide lifted many, but now leaders must prove they can win in models, cloud, and infrastructure as competition rises and financing gets more selective.

Should people own corporate debt as well as equities?

With rate cuts coming and lots of dry powder, demand for issuance should be there, but portfolios should be built to handle bumps while staying exposed to the long AI trend.

Clients want private AI exposure; how does that spill into public markets and IPOs?

AI apps are scaling at unprecedented speed in private markets, so selectivity is key, and when giants like OpenAI or SpaceX list they will enter as mega caps and face public scrutiny that could reset expectations.

What approvals are still missing for TikTok?

Beijing’s approval is the big one, and while we may not get a loud public blessing the caliber of investors suggests confidence, with a target close around late January.

Put TikTok in the wider U.S.–China tech tension—chips, Taiwan, and Nvidia’s H200 chatter.

There are many threads from AI chips and rare earths to tariffs, and while the H200 discussion may be separate, we’re watching for any trade-offs that grease the skids for TikTok.

Amy, does this deal ease tensions, and who’s ahead right now?

It calms some concerns and highlights how relationships matter, but China is ahead because it invested in infrastructure and follows a national plan while the U.S. lacks a cohesive approach.

What’s truly at stake in the AI race?

Hardware and telecom are strategic, China is exporting systems across regions like Africa, and with the U.S. pulling back globally that creates real competitive risks.

And quantum—how close are practical uses?

We saw real progress in 2025 that moves from theory to application, but the U.S. still needs policy clarity and coordinated investment to keep pace.

OpenAI is targeting a huge raise and is selling campus licenses; classrooms were worried not long ago—what changed?

After early fears about cheating and learning loss, AI has become ubiquitous in class, and OpenAI is using a classic play to embed tools where future workers train.

NASA’s new administrator Jared Isaacman spoke with us about the next chapter.

The policy doubles down on Artemis, a lunar base, and nuclear propulsion and power, with NASA leading science while industry partners, old and new, help execute as they always have.

Looking to 2026, will tech still lead?

Yes—rate cuts, resilient growth, fiscal support, and AI should keep tech and growth in front.

What needs proving next year?

We need clear use cases and returns across sectors, and continued investment to make that real.

How do you see labor impacts?

Some displacement is likely near term, but over time technology tends to be additive for the labor market.

Where are you putting money—chips and infra, or apps and enablement?

We like hyperscalers, electrical equipment, and the platforms that make AI deployable, secure, and data-ready.

Investors are scrutinizing names and OpenAI exposure.

That skepticism is healthy, and hyperscalers’ free cash flow should comfortably fund heavy capex.

If big private AI names list, what are the implications, and do you still favor the U.S.?

They could enter indexes quickly and in size, and we still prefer the U.S. with tech and AI infrastructure as core holdings.

That’s it for Bloomberg Tech; enjoy the weekend, and we’ll be back here Monday at the usual time.