The upcoming commercial agreement for the social media platform TikTok will include new investors as well as existing investors in the platform’s Chinese parent company ByteDance, sources told CNBC’s David Faber.
“Where this thing is capitalized and how large it is remains to be seen,” Faber said during CNBC’s “Squawk on the Street” on Tuesday. “‘I’m hearing it’s actually going to be relatively small in terms of the actual size of the checks that are written for the entity itself, and it will not be something that is going to go public at some point.”
The deal is expected to close in the next 30 to 45 days, according to the sources, who asked not to be named because the details of the negotiations are confidential. As part of the agreement, Oracle will keep its cloud deal with the platform, Faber said.
The new details about the deal come after U.S. Treasury Secretary Scott Bessent said Monday that the U.S. and China have reached a “framework” deal for TikTok.
TikTok’s future in the U.S. has been uncertain since 2024, when Congress passed a bill that would ban the platform unless its Chinese owner, ByteDance, divested from it. Lawmakers had grown concerned that the Chinese government could access sensitive data from American users or manipulate content on the platform.
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