In a move that could reshape the landscape of social media in the United States, the White House has announced a sweeping agreement to transfer control of TikTok’s U.S. operations to a new American-led joint venture, with tech giant Oracle playing a central role. The deal, which has been months in the making and is expected to be valued at several billions of dollars, aims to address persistent national security concerns about the Chinese-owned app while preserving access for its 170 million U.S. users.
According to BBC News, the heart of the agreement lies in TikTok’s famed content recommendation algorithm—the engine that powers each user’s personalized feed. This algorithm will be copied from its parent company ByteDance, retrained exclusively on U.S. user data, and operated within the United States under Oracle’s close supervision. A senior White House official emphasized that Oracle will audit and inspect both the source code and the recommendation system, essentially rebuilding it for American users to ensure that only U.S. data is used in its operation.
“We are 100% confident that a deal is done,” White House Press Secretary Karoline Leavitt declared on Saturday, as reported by CNN. The sentiment was echoed by other administration officials who described the deal as a win for U.S. citizens and a model for how technology companies with global reach might address geopolitical concerns in the future.
President Donald Trump is expected to sign an executive order later this week, officially certifying the deal as a qualified divestiture in compliance with the ban-or-sale law passed by Congress in 2024. The order will also extend the enforcement pause on the TikTok ban by 120 days, giving all parties time to finalize paperwork and secure regulatory approvals from both U.S. and Chinese authorities. While the White House projects confidence that China has approved the arrangement, some regulatory steps remain before the transfer can be completed.
Oracle’s involvement in the deal is multifaceted. Not only will the company provide the cloud infrastructure to store all American user data—a role it already plays under the existing “Project Texas” arrangement—but it will also act as the security provider for the new U.S.-based TikTok. Oracle’s chairman, Larry Ellison, a close ally of Trump, is expected to be a key figure in the venture. Private equity firm Silver Lake, which has investments in a range of high-profile companies, will also be among the investors, alongside Fox Corp., as clarified by a source familiar with the matter and reported by CNN.
The new ownership group will be composed of majority American investors and run by a board of directors primarily made up of Americans. ByteDance, the Chinese parent company, will retain a stake of less than 20% in TikTok U.S., ensuring that decision-making power shifts decisively to the American side. The full slate of investors is not yet finalized, but the White House has hinted that “real household names” from the tech and media sectors—such as Michael Dell and Lachlan Murdoch—could be involved. However, Fox Corp. will participate as a corporate entity rather than through individual Murdoch family members.
The deal is designed to comply with a 2024 U.S. law that prohibits any cooperation regarding the operation of TikTok’s content recommendation algorithm between ByteDance and the new American ownership group. U.S. officials have long expressed concern that ByteDance could be compelled to manipulate the algorithm at the behest of the Chinese government, potentially influencing American public opinion or generating dissent. By isolating the algorithm and retraining it solely on U.S. data, the White House hopes to neutralize these risks.
As reported by Reuters, all data belonging to American users will be stored on Oracle’s U.S.-based cloud infrastructure. The Trump administration has made it clear that the U.S. government will not take a board seat or receive a “golden share” in the new entity, nor is it certain whether the government will receive any payment as a condition of approval.
Despite the deal’s apparent comprehensiveness, skepticism remains. Some lawmakers and analysts worry that Chinese influence could persist, given ByteDance’s continuing minority stake. Others, like Jasmine Enberg, principal social media analyst at eMarketer, have raised concerns about the user experience. “Material (or even perceived) changes to the content, algorithm or app policies could prompt massive shifts in user behaviour,” Enberg told BBC News. She warned that if the new, U.S.-only algorithm cuts off American users from international content, it could degrade the experience and lower the app’s value for creators, brands, and investors alike.
Indeed, the fate of TikTok’s algorithm has been at the center of the debate. The recommendation engine is widely credited with making the app a cultural phenomenon, but it has also drawn scrutiny from U.S. officials who see it as a potential tool for foreign interference. The new arrangement will see Oracle continuously monitor how content is pushed to users, and the algorithm will be managed exclusively for U.S. users. This raises the possibility that Americans may eventually need to download a separate, domestically operated version of the app, although details remain to be clarified.
Meanwhile, Oracle’s stock has surged on news of the deal, reflecting investor optimism about the company’s expanded role in the burgeoning AI and cloud infrastructure markets. In a related development, Oracle CEO Safra Catz announced she will step down, with co-CEOs Clay Magouyrk and Mike Silica set to take over. Catz will become vice chair of Oracle’s board, a move that could free her to assume a leadership role in the new TikTok joint venture, though this has not been confirmed.
The TikTok saga has unfolded against a backdrop of tense U.S.-China relations and ongoing trade disputes. Last week’s breakthrough on the deal marked a rare moment of progress in negotiations between the world’s two largest economies. The Chinese embassy in Washington signaled a willingness to see “productive commercial negotiations” that comply with both countries’ laws and interests, according to Reuters.
President Trump’s executive order will include a 120-day enforcement pause, extending the ban deadline to mid-December 2025 and giving all parties time to close the agreement. If completed, the deal would conclude years of wrangling over TikTok’s future in the U.S. and could serve as a template for handling similar disputes involving foreign-owned technology platforms.
For now, TikTok’s millions of American users can breathe a sigh of relief—at least temporarily—as the app’s fate appears to be in the hands of a new, American-led coalition. Whether this solution will satisfy all critics or maintain the app’s unique appeal remains to be seen, but the stakes for digital privacy, national security, and global tech competition have rarely been higher.
