The long-awaited TikTok framework agreement is taking shape with a hybrid investor structure that includes both new backers and existing ByteDance stakeholders, sources tell CNBC. The deal, expected to close within 30-45 days, preserves Oracle's critical cloud infrastructure partnership while potentially resolving the platform's uncertain U.S. future amid ongoing regulatory pressure.
The TikTok saga just took another twist. Sources close to the negotiations tell CNBC's David Faber that the upcoming framework agreement will blend new investors with existing ByteDance stakeholders - a structure that could finally resolve the platform's regulatory limbo without forcing a complete divestiture.
The deal's expected 30-45 day timeline puts resolution right in the thick of peak political season, but sources suggest the financial scope might surprise skeptics. "I'm hearing it's actually going to be relatively small in terms of the actual size of the checks that are written," Faber revealed during Tuesday's Squawk on the Street. The entity won't be going public anytime soon either, sources add.
Oracle's role remains pivotal. The cloud giant will maintain its infrastructure agreement with TikTok, preserving a partnership that's been central to the platform's U.S. operations since regulatory scrutiny intensified. This continuity suggests the deal structure keeps core technical operations intact while addressing Washington's ownership concerns.
The timing connects directly to Treasury Secretary Scott Bessent's Monday announcement about a U.S.-China "framework" deal. But here's where it gets interesting - Bessent revealed Tuesday that commercial terms were actually locked in back in March or April. China reportedly put everything on ice after Trump's tariff announcements, showing how trade tensions keep bleeding into tech deals.
This hybrid investor approach represents a middle path that seemed impossible just months ago. Instead of the binary choice between total divestiture or outright ban, the framework appears to thread the needle by bringing in American capital while maintaining ByteDance's involvement. It's the kind of compromise that could set precedent for other Chinese tech companies facing similar pressure.
The regulatory backdrop hasn't eased up. Congress's 2024 legislation still hangs over TikTok, demanding divestiture or facing a ban over data security and content manipulation concerns. Lawmakers worried that Beijing could access American user data or influence what 170 million U.S. users see in their feeds. This deal structure aims to address those concerns without completely severing ByteDance's connection.
What makes this particularly significant is the investor mix. New backers presumably bring fresh American capital and oversight, while existing ByteDance investors maintain continuity and technical expertise. It's a balancing act that could satisfy both sides - if regulators sign off on the final structure.
The Oracle partnership continuation matters more than it might seem. The company has been TikTok's cloud infrastructure backbone, handling data storage and processing that keeps the app running for millions of American users. Maintaining this relationship suggests technical operations won't face major disruption during the transition.
Market reaction has been muted so far, partly because details remain scarce. The White House, TikTok, and Oracle all declined to comment, keeping speculation alive about final terms. But the 30-45 day timeline means we'll know soon whether this framework can actually resolve one of tech's most watched regulatory battles.
This hybrid investor structure represents the kind of creative dealmaking that seemed impossible during peak U.S.-China tensions. If it works, it could become the template for resolving other cross-border tech disputes without forcing complete ownership changes. The 30-45 day timeline means we'll soon know whether compromise can triumph over the binary choices that have dominated this saga.
