US TikTok Deal Expected to be Finalized Soon
The U.S. is on the verge of approving a deal regarding TikTok, which aims to keep user data secure within a “trusted” cloud environment in the United States, with most ownership in the hands of American investors, according to a White House official.
This new agreement will create a joint venture to manage U.S. operations, including the current parent company, though it will maintain less than 20% of shares as dictated by law. An official shared that “the administration looks forward to wrapping up this deal with all parties involved.” President Trump is expected to approve the transaction and sign the executive order later this week.
This new venture will be primarily governed by a board mostly made up of American investors who have expertise in national security and cybersecurity.
Interestingly, Trump has previously indicated that he would like to have a say in TikTok’s future should he return to office.
The board is anticipated to consist of seven members, the majority of whom should be U.S. citizens. One member, who won’t be part of the Data Security Committee or the board, will be appointed by ByteDance.
As part of the agreement, Oracle, a major tech firm, will collaborate with the U.S. government to act as TikTok’s trusted security provider. Their role will involve monitoring and ensuring the safety of TikTok’s U.S. operations, particularly focusing on data security.
Oracle’s responsibilities will cover everything from source code reviews to application development and deployment, and American data will be securely stored in the U.S., effectively sealing it off from access by China.
Officials have assured that U.S. user data will be handled in a reliable, dedicated cloud environment managed by Oracle, using advanced technology for monitoring data flows.
The primary aim here is to ensure that “foreign forces like China won’t have access to U.S. user data,” said a senior official. As for TikTok’s algorithm, it’s claimed that it will be protected and managed within the U.S., separate from ByteDance’s control. The algorithms are set to be reconstructed from scratch and safeguarded by Oracle, ensuring American data is adequately protected against outside influences.
Thus, by leasing duplicate algorithms to the joint venture, TikTok can maintain its operations in the U.S. without disrupting user experience. The platform is designed to remain globally interconnected, allowing users to access international content with the peace of mind that their data is safe.
The agreement proposes that the U.S. operation will independently oversee harmful content, relying on their terms and conditions, distinct from other TikTok versions worldwide.
Promoters of the deal say it will allow all Americans to enjoy a safe TikTok experience while also generating an estimated $178 billion in U.S. economic activity over the next four years and sustaining numerous jobs. The executive order from the president is set to finalize the deal, deferring enforcement of certain laws designed to protect Americans from foreign applications by up to 120 days.
This deal comes after months of negotiations, spurred by a law enacted during President Biden’s tenure that banned TikTok and similar apps tied to foreign adversaries. Following a Supreme Court challenge, the law was granted a 90-day extension before taking effect on January 19, 2025.
Concerns about national security have been heightened due to fears that the Chinese government could access user data or utilize the platform for foreign influence. Despite these tensions, ByteDance, TikTok’s parent company, resisted selling the platform, and Trump previously issued multiple delays in implementing legal enforcement against the app.
