After years of political battles, courtroom debates, and tense U.S.–China negotiations, President Donald Trump is finally set to sign a landmark deal on Thursday that will reshape the future of TikTok in America. According to senior White House officials, the deal will transfer TikTok’s U.S. operations from its Chinese parent company, ByteDance, to a newly created joint-venture company backed by American investors.
The signing comes after months of delays and deadline extensions, with Trump personally involved in negotiating terms that both satisfy U.S. security concerns and keep the app—used by more than 170 million Americans—alive in the country.
Why the Deal Was Needed
The 2024 Law That Put TikTok at Risk
TikTok’s future in the U.S. has been under a cloud since Congress passed a bipartisan law in April 2024. The Protecting Americans from Foreign Adversary Controlled Applications Act mandated that TikTok must either be sold to U.S.-based owners or face a nationwide ban.
In January 2025, just a day before Trump began his second term, TikTok briefly shut down across U.S. app stores due to the law. Trump quickly promised to halt enforcement, assuring millions of American users that he would “find a deal” instead of allowing a ban. Since then, he has extended the compliance deadline multiple times—most recently planning another 120-day pause to give time for the final deal to close.
How the New Structure Will Work
ByteDance’s Reduced Role
Under the new arrangement, ByteDance will no longer control TikTok’s U.S. operations. Instead, it will retain less than 20% ownership in the restructured joint venture. This structure is intended to meet the legal requirement that TikTok no longer falls under the effective control of a Chinese company.
American Oversight of Data and Algorithm
A critical piece of the agreement addresses U.S. concerns over data privacy and potential foreign influence:
- Data Storage: All American user data will be stored on servers in the United States, overseen by Oracle, a Texas-based cloud and software company. Oracle will be responsible for continuous monitoring of how data is accessed and secured.
- Algorithm Control: TikTok’s famous recommendation algorithm—the heart of the platform—will be copied and retrained in the U.S. Oracle engineers will manage and audit the algorithm to ensure it is free from any Chinese government interference or hidden manipulation.
- Ongoing Security Audits: Officials say the system will undergo continuous third-party reviews to make sure the app’s technology remains transparent and safe.
This combination of American ownership and strict technology oversight is what makes the deal a “qualified divestiture” under the 2024 law.
Key Figures Backing the Deal
Trump has highlighted several prominent business leaders expected to play a role:
- Larry Ellison, co-founder of Oracle, whose company will directly manage data and algorithms.
- Michael Dell, founder and CEO of Dell Technologies, who is expected to bring tech expertise and investment power.
- The Murdoch family, owners of Fox Corp. and News Corp., who could potentially provide media influence and financial backing.
Trump described these individuals as “patriots” and praised them as “very prominent people who love this country.” Their involvement signals not only financial support but also political alignment with Trump’s vision of bringing TikTok fully under U.S. control.
White House Confidence and Press Briefings
White House Press Secretary Karoline Leavitt told Fox News over the weekend that the deal was “almost over the finish line” and only awaited Trump’s signature. She confirmed that a new board would be established to oversee TikTok, with at least six of the seats reserved for American investors.
Though exact names of all board members have not been released, administration officials insist the governing structure will guarantee American dominance in TikTok’s U.S. operations.
The Bigger Picture: Why TikTok Was Seen as a Risk
For years, U.S. officials and security experts warned that TikTok posed a national security threat. The concerns included:
- Data Access: Fears that ByteDance could be compelled by Chinese law to share U.S. user data with Beijing.
- Algorithm Manipulation: The possibility that TikTok’s powerful recommendation system could be used to spread propaganda, amplify certain narratives, or suppress content unfavorable to Chinese interests.
- Youth Influence: With more than 170 million American users, many of them young, the app holds unprecedented sway over culture, politics, and information flow.
These risks fueled bipartisan support for tighter regulation. Even before this deal, Trump had signed an executive order in 2020 seeking to ban TikTok, though President Biden later reversed it. Ironically, Biden himself signed the 2024 law that created the current mandate for a sale.
Challenges Ahead
Even with Trump’s signature, several hurdles remain:
- Regulatory Approvals: Both U.S. regulators and Chinese authorities must formally approve the structure. Beijing has not yet given its final green light.
- Implementation Timeline: Experts say the actual transfer of data systems, algorithm retraining, and corporate restructuring could take months.
- Political Fallout: Critics worry about media concentration if figures like the Murdochs take board seats. Others fear that bringing TikTok too close to politically connected U.S. billionaires could create new conflicts of interest.
- User Impact: It’s still unclear whether TikTok users will see noticeable changes in the app’s design, algorithm, or privacy disclosures.
What Comes Next
If all goes as planned, Trump’s signature on Thursday will mark the beginning of TikTok’s most significant transformation since its global rise. The deal would:
- Secure TikTok’s future in the U.S. market.
- Remove the threat of an immediate nationwide ban.
- Place one of the world’s most powerful social media platforms under American corporate leadership and scrutiny.
For Trump, the deal represents both a policy victory—delivering on national security concerns—and a political win, as he fulfills a campaign promise to keep TikTok accessible while safeguarding American interests.
The Information is Collected from NBC News and CBS News.
