White House Unveils TikTok Deal with American Investors
The White House has announced a deal enabling a consortium of U.S. investors to take control of TikTok's American operations, ensuring majority American ownership and oversight of the app's algorithm. This agreement, reached between President Donald Trump and Chinese President Xi Jinping, addresses national security concerns by transferring control from ByteDance while allowing the popular platform to continue operating in the U.S. Officials emphasized that the arrangement will safeguard user data and maintain connectivity with global users.
The White House on September 22, 2025, detailed an agreement that will see TikTok's U.S. operations transferred to a group of American investors, resolving longstanding concerns over the app's Chinese ownership. President Donald Trump, who has pushed for action on TikTok since his first term, described the deal as a victory for national security following discussions with Chinese President Xi Jinping. The arrangement involves a consortium including Oracle, Silver Lake, and prominent figures such as Larry Ellison, Lachlan Murdoch, and Michael Dell, aiming to create a U.S.-based entity that oversees the platform's algorithm and data.
This development follows a protracted saga that began in 2020, when Trump initially threatened to ban TikTok over fears that ByteDance could share user data with the Chinese government. Those efforts faced legal challenges and were adjusted under subsequent administrations, but security worries persisted. In 2025, amid renewed tensions, Trump extended deadlines and negotiated directly with Xi, leading to the current framework. Sources indicate the deal sidesteps a full ban mandated by a 2024 law, with Trump set to declare it compliant.
Under the terms, Americans will hold six of seven board seats for TikTok's U.S. operations, with ByteDance retaining one seat. The algorithm, which drives the app's content recommendations, will be controlled and overseen by U.S. entities, specifically with Oracle managing aspects of it. User data will be stored in a trusted U.S. cloud, ensuring it remains under American jurisdiction. A White House official stated that the deal ensures 'U.S. companies control the algorithm that powers the app's video feed,' highlighting protections against foreign influence.
The investor lineup remains somewhat fluid, but reports confirm involvement from Oracle and Silver Lake, alongside other venture capital firms and private equity funds. Trump has publicly noted the participation of allies like Murdoch and Dell, framing the consortium as aligned with American interests. This partial ownership model allows TikTok to maintain its global reach, keeping U.S. users connected to international content while operating independently.
Critics, including Republican lawmakers, have raised concerns. The chair of the House Select Committee on the Chinese Communist Party expressed worries that the deal might still permit Beijing to influence users, calling for stronger safeguards. Differing viewpoints emerged, with some experts praising the arrangement as a balanced solution that preserves the app's popularity—boasting over 150 million U.S. users—while addressing risks. Others argue it falls short of a complete divestiture, potentially leaving loopholes.
ByteDance has not commented extensively, but the agreement appears to relieve pressure from a potential shutdown. TikTok's leadership has indicated commitment to transparency under the new structure. Market reactions were positive, with Oracle's stock rising over 6% following the announcement, amid news of the company's CEO changes.
Broader implications include setting precedents for foreign tech firms in the U.S., potentially influencing regulations on data security and algorithmic control. Internationally, the deal could prompt similar actions in other countries wary of Chinese apps. Analysts note it reflects ongoing U.S.-China tech rivalries, with possible retaliatory measures from Beijing. As the agreement awaits final approvals, it underscores efforts to balance innovation with security in the digital age.