Trump Set to Finalize TikTok Deal with American Majority Stake
President Trump plans to sign an agreement this week transferring majority control of TikTok to U.S. investors, while ensuring a domestic firm handles user data protection, according to a senior White House official speaking Monday.
This arrangement shifts TikTok’s U.S. operations into a joint venture headquartered in the country, with Oracle—co-founded by Trump supporter Larry Ellison—acting as the primary security partner.
The move addresses long-standing national security worries about Chinese influence over the app’s vast American audience.
The deal reduces ByteDance’s ownership below 20%, with U.S.-based investors, including Oracle and private-equity group Silver Lake, holding roughly 80% of the equity. A seven-person board will oversee the new entity, where ByteDance can appoint just one director.
Oracle will process, retrain, and monitor data from over 170 million U.S. users, blocking any Chinese access to this information. Negotiations hinged on securing U.S. oversight of the content recommendation algorithm, a key concern for officials.
ByteDance will replicate its existing algorithm and license it to the American-led company, as reported by the Journal.
Key U.S. Investors and Board Structure Emerge in TikTok Restructuring
Several prominent American figures are lining up to back the venture. Trump, in a Sunday Fox News interview, noted that Dell Technologies CEO Michael Dell has participated in discussions, while Lachlan Murdoch and Rupert Murdoch are likely to join the investor lineup.
Lachlan chairs News Corp, parent of the New York Post, and leads Fox Corp as CEO. The White House seeks participants described by the official as “patriots that love America” with expertise in national security and cybersecurity.
This structure complies with a 2024 congressional law, upheld by the Supreme Court, mandating ByteDance divest to under 20% equity or face a ban. Critics in Congress, wary of data harvesting by foreign powers and the app’s sway over young users, had pushed for swift action.
Trump granted three delays—a 75-day extension upon taking office, another in April, and a 90-day one in June—citing the platform’s “tremendous value” and his authority to pause enforcement. He also credited his TikTok activity with aiding his 2024 victory.
Deal Saves Jobs, Generates Revenue, and Advances After U.S.-China Talks
The White House frames the agreement as a win for the economy, preserving “thousands of jobs” and supporting small businesses reliant on the app. The official forecast savings of “hundreds of billions of dollars over the next five years.”
The federal government anticipates a multibillion-dollar payment for facilitating the transaction, per the Journal.
Progress accelerated following U.S.-China meetings in Madrid last week and Trump’s Friday call with Xi Jinping. Trump initially stated Xi had “approved” the deal but later adjusted to “we look forward to getting that deal closed.” Recent reports confirm the framework was established earlier in September, with Trump expected to issue an executive order certifying compliance and pausing enforcement for 120 days to complete paperwork.
The arrangement ensures U.S. control of the algorithm and data storage on domestic servers, mitigating risks while keeping the platform operational for its 170 million users.
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