President Donald Trump will sign the long-awaited TikTok deal on Thursday, officially transferring majority control of the popular video app into US hands. The move is being hailed as a landmark moment in Washington’s ongoing push to curb Chinese influence in American tech.
The Deal
According to White House officials, TikTok’s US operations will be spun into a new joint venture based in the United States. Under the agreement:
- Oracle and Silver Lake will lead a group of American investors, together owning about 80% of the new entity.
- ByteDance, TikTok’s Chinese parent company, will see its stake reduced to less than 20%.
- Oracle will remain the app’s data and security provider, ensuring U.S. user information stays under American oversight.
Board and Algorithm
The new company will be governed by a seven-member board, with ByteDance allowed only one seat. Control of TikTok’s powerful recommendation algorithm was a key sticking point in negotiations. The final deal requires ByteDance to license the algorithm to the U.S.-based entity, effectively removing Beijing’s ability to influence the app’s content distribution.
Why It Matters
The agreement marks the end of years of uncertainty over TikTok’s future in the United States. Trump had repeatedly threatened to ban the app unless Chinese ownership was cut back. By securing majority U.S. control, the administration aims to protect American data while preserving TikTok’s availability for millions of users.
For Oracle, the deal represents a major strategic victory. Already a key infrastructure provider for TikTok, Oracle now cements its role at the center of U.S. tech security and data oversight. Shares of the company could see momentum as investors welcome its deeper involvement in one of the world’s most widely used apps.
The Bigger Picture
The TikTok deal underscores Washington’s tougher stance on Chinese tech. Trump’s administration has already pursued equity stakes in U.S. chipmakers, rare-earth suppliers, and lithium projects deemed critical to national security. By pushing ByteDance out of controlling power, the U.S. is sending another clear signal: Chinese ownership of strategic technology platforms will face heavy scrutiny.
With Trump’s signature expected Thursday, TikTok’s U.S. future looks secure, but on American terms. The deal balances user access with national security, reshaping the app’s global governance and setting a precedent for how Washington handles foreign ownership of tech platforms.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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