President Trump Signs Executive Order Supporting TikTok's Transition to U.S. Ownership

President Donald Trump has signed an executive order endorsing a proposed deal to transfer TikTok's U.S. operations to American ownership, aiming to address national security concerns and maintain the app's availability in the United States. The agreement involves creating a U.S.-based joint venture controlled by American investors, including Oracle and Silver Lake Partners, with ByteDance retaining a minority stake of less than 20%. The new board will consist of six American-appointed members and one representative from ByteDance, who will be excluded from security-related matters.

Vice President JD Vance emphasized that the deal ensures American investors will control the algorithm that determines content on the platform. He stated that more information about the deal will be revealed in the coming weeks.

The agreement also requires approval from Chinese authorities. President Trump indicated that Chinese President Xi Jinping has approved the deal, though the Chinese embassy in Washington did not immediately respond to inquiries seeking confirmation.

The restructuring aims to comply with a 2024 U.S. law mandating ByteDance to divest its U.S. TikTok assets by January 2025 or face a nationwide ban. The executive order provides a 120-day grace period to finalize the terms.

Analysts note that the involvement of investors with business or political ties to President Trump, such as Oracle co-founder Larry Ellison, raises questions about potential political influence on the platform.

The deal's impact on TikTok's algorithm and user experience remains uncertain. A licensed copy of ByteDance's algorithm, retrained solely with U.S. data, is expected to power the new U.S. version of the app to mitigate risks of foreign influence.

China's initial resistance to the divestment has shifted, with geopolitical priorities and trade dynamics influencing its decision to cooperate. Observers suggest that China views the TikTok deal as a concession to maintain positive U.S.-China relations and advance trade negotiations.