TLDRs;
- Trump is set to approve a TikTok deal on September 25, transferring U.S. control from ByteDance to American investors.
- Oracle will oversee U.S. user data and algorithms, while ByteDance’s stake in the new company will remain under 20%.
- Bipartisan lawmakers pushed the 2024 law requiring TikTok’s sale or a ban due to national security concerns.
- TikTok’s U.S. operations will have an American-led board, with prominent investors like Larry Ellison and Michael Dell involved.
The White House is preparing to finalize a deal that would transfer control of TikTok’s U.S. operations from its Chinese parent company, ByteDance, to a group of American investors.
President Donald Trump is expected to sign the agreement on Thursday, September 25, marking a major development in the years-long debate over the social media platform’s ownership and national security risks.
The deal is designed to comply with a bipartisan law passed in 2024 that required TikTok to be sold to U.S.-based owners this year or face a nationwide ban. The law followed mounting concerns from lawmakers and intelligence officials who argued that ByteDance could be pressured by Beijing to hand over sensitive user data or manipulate TikTok’s powerful recommendation algorithm.
New Ownership Structure Planned
According to senior White House officials, the agreement will create a new joint-venture company to oversee TikTok in the United States. ByteDance will retain less than 20% ownership, while the majority stake will be held by U.S. investors. The structure is intended to reassure both Congress and American users that the platform will operate independently from Chinese influence.
Oracle, the Texas-based software and cloud computing giant, will serve as the primary technology partner. Oracle is expected to manage U.S. user data and monitor the app’s algorithm to ensure transparency and prevent foreign interference. Private equity firm Silver Lake and other high-profile American investors, including Larry Ellison, Michael Dell, and the Murdoch family, are also set to play roles in the new governance model.
A six-member board will be formed to oversee TikTok’s operations, with all seats reserved for American stakeholders. While the full list of board members has not yet been disclosed, administration officials described the group as composed of “prominent business leaders” and “patriots committed to U.S. security.”
National Security Concerns Drive Urgency
TikTok, which boasts more than 170 million U.S. users, has been a flashpoint in Washington for years. National security officials have repeatedly warned that the app could be exploited for surveillance or propaganda. These concerns prompted Trump to attempt a TikTok ban in 2020 during his first term, although that effort was later rolled back by then-President Joe Biden.
Bipartisan momentum returned in 2024, when Congress passed legislation mandating TikTok’s divestment. Earlier this year, the app briefly went offline in the U.S. before Trump’s second inauguration, raising fears among users that the popular platform might disappear permanently. Trump later announced that he would seek a deal instead of enforcing the ban immediately.
The administration has since extended the deadline several times, and officials confirmed this week that Trump will grant an additional 120-day pause to allow the new agreement to close.
What Comes Next for TikTok
If the agreement is signed as expected, TikTok’s U.S. business will be governed under strict safeguards, with Oracle ensuring American data stays within the country and algorithms retrained under U.S. oversight. Analysts say this could set a precedent for how Washington deals with foreign-owned tech companies in the future.
While TikTok itself has not publicly commented on the pending deal, the company has consistently denied that its user data is accessible to the Chinese government. Still, White House officials argue that the divestment is the only way to protect U.S. national interests without banning the app outright.
For TikTok’s massive U.S. user base, the agreement could mean stability after years of uncertainty. For Washington, it represents a test case in balancing open markets, technological innovation, and national security concerns in an increasingly tense geopolitical environment.
