President Trump is preparing to finalize an agreement this week that would place TikTok under majority American ownership and ensure that a US company manages all of the platform’s data security, a senior White House official announced Monday.
The arrangement calls for TikTok’s US operations to be shifted into a new joint venture headquartered in the United States. Oracle, the technology firm co-founded by Trump ally Larry Ellison, has been chosen to oversee the app’s data protection.
As part of the deal, current stakeholders along with new American investors – including Oracle and private equity giant Silver Lake – will collectively hold roughly 80% of the enterprise, cutting Chinese parent company ByteDance’s ownership stake to below 20%.
The newly formed company will operate under the direction of a seven-person board, with ByteDance permitted to put forward only a single board member. Data belonging to over 170 million US users will be “retrained” and “continuously monitored” by Oracle, the official said, making clear that China will be barred from accessing that information.
One of the most difficult issues in the negotiations centered on control of TikTok’s recommendation algorithm, according to the White House. The Journal reported that ByteDance intends to duplicate its algorithm and then lease it to the American-controlled firm.
Trump has also stated that other US investors have shown interest in participating. The administration, the official explained, wants “patriots that love America” who also possess expertise in both cybersecurity and national security.
On Sunday, Trump told Fox News that Michael Dell, the head of Dell Technologies, was “involved” in the process, and that Lachlan Murdoch and Rupert Murdoch would “probably be in the group” as well. Lachlan Murdoch currently serves as chairman of News Corp and CEO of Fox Corp, which owns The Post.
The White House emphasized that rescuing TikTok would not only protect the app’s future but also preserve “thousands of jobs” and support small businesses. Officials projected the deal could generate “hundreds of billions of dollars over the next five years.”
In addition, the federal government is expected to collect a multibillion-dollar fee for structuring the agreement, according to the Journal.
Trump had previously sidestepped a law passed by Congress and upheld by the Supreme Court that required TikTok to separate from ByteDance. That statute mandated that the Chinese parent hold no more than a 20% stake in the US business.
Lawmakers who have taken a hard line against Beijing had warned that ByteDance’s control over TikTok could enable China to gather sensitive data from Americans and manipulate the platform’s algorithm to shape public opinion. Critics noted the app’s influence among millions of young users.
Trump issued three separate delays on the ban as talks progressed, insisting that TikTok carried “tremendous value” and that his executive authority gave him the ability to override Congress’s mandate. He has also pointed out that his campaign’s presence on TikTok played a role in his 2024 election victory.
The president first granted a 75-day extension on the looming ban when he assumed office, announced a second 75-day delay in April, and then offered another 90-day postponement in June.
Negotiators hammered out the final details of the deal last week during meetings between American and Chinese officials in Madrid, while Trump held a phone conversation with China’s President Xi Jinping on Friday.
Following that call, Trump said Xi had “approved” the TikTok deal, but he clarified soon after that “we look forward to getting that deal closed.”
