Trump to Finalize TikTok Deal with American Investors
President Donald Trump is set to approve a new agreement this week that will give more control over TikTok’s algorithm in the U.S. to a group of American investors, as confirmed by a senior White House official.
According to the official, U.S. and Chinese representatives have reached a “compromise” aimed at meeting both nations’ legal requirements. As part of the arrangement, Oracle will receive access to TikTok’s recommendation algorithm, which has been a challenging negotiation point, and will work to secure user data on American TikTok users.
In April 2024, Congress enacted legislation mandating that ByteDance, TikTok’s China-based parent company, divest its U.S. assets within a year or face closure due to national security concerns. The president has already delayed this deadline several times, including earlier this month.
Under this new deal, a version of TikTok’s algorithm will be developed specifically for the U.S. market. Oracle will thoroughly inspect and adapt this algorithm using American user data, storing it on Oracle’s servers in the U.S., which currently hold user information, the White House official noted. The new venture will have complete operational control over the algorithm.
“An algorithm is really just a mathematical formula influenced by data, which determines content recommendations,” the official explained. “By relocating the algorithm to the U.S. and running it on local data, we believe we can effectively ensure the algorithm functions properly and complies with relevant laws on both sides.”
ByteDance will keep a minority stake—less than 20%—in the U.S. operations. The remaining shares will be distributed among a mix of existing U.S. and global investors, along with new firms that have no ties to ByteDance, as outlined by the official.
On Sunday, the president mentioned that Rupert Murdoch and his son Lachlan could be part of the TikTok deal.
There will be no government-appointed members on the board of the new entity, and the U.S. government will not possess any equity in the venture, as per the official’s statement.
Trump is expected to sign an executive order this week to affirm that the deal aligns with U.S. national security interests. He will also extend an enforcement pause for 120 days, allowing more time for regulatory reviews and the finalization of documentation for both U.S. and Chinese authorities.
“The president and Vice President Vance have successfully negotiated a favorable deal that preserves TikTok for more than 170 million U.S. users while ensuring its security,” the official remarked.
