On Thursday, September 25, 2025, President Donald Trump is poised to sign an executive order that could reshape the future of TikTok in the United States, closing a chapter in a years-long saga that has pitted national security concerns against digital innovation and global business interests. The expected order would grant American companies partial ownership of TikTok, currently owned by the Chinese technology giant ByteDance, and set the stage for a complex new arrangement aimed at addressing persistent fears about data privacy and foreign influence.
According to CBS News, the deal—brokered by the Trump administration—would constitute a "qualified divestiture" under a law passed by Congress in 2024, which requires ByteDance to divest its ownership of TikTok or face a nationwide ban. The White House has described the agreement as a joint venture based in the U.S., with a majority of American investors and board members, while ByteDance would retain a 19.9% stake—just below the 20% threshold set by the legislation for foreign ownership.
For years, TikTok's ownership has been a lightning rod for controversy. Lawmakers and judges have debated whether the data collected by the China-based company presents a national security risk, especially given the app's immense popularity among American users—numbering some 170 million. The Trump administration, echoing bipartisan concerns, has argued that the changes now on the table finally meet the requirements of a law that has technically banned TikTok since January 2025, though the White House under both the Biden and Trump administrations had delayed enforcement.
But how exactly will this new arrangement work? Under the terms described by White House officials, U.S.-based tech giants Oracle and Silver Lake will take on a central role. Oracle will be tasked with providing "top to bottom security" by hosting all American user data and reviewing TikTok's code to ensure its algorithm is "behaving appropriately and it's secure," as a senior official told CBS News. Silver Lake, a major technology investor, is expected to join Oracle in overseeing the app's security and, crucially, its recommendation algorithm—the very engine that drives TikTok's viral video popularity.
The recommendation algorithm has long been a sticking point. The deal calls for ByteDance's algorithm to be copied and retrained to operate solely on U.S. user data, a technical feat that aims to insulate American users from the possibility of foreign surveillance or manipulation. Yet some lawmakers remain unconvinced that the arrangement goes far enough. Representative John Moolenaar of Michigan, chairman of the House China Committee, voiced his skepticism: "Congress set clear legal safeguards for a deal, including precluding any cooperation with ByteDance or its affiliates on TikTok's recommendation algorithm, and prohibiting any ongoing operational relationship between a new TikTok and ByteDance. Based on initial reports, I am concerned the reported licensing deal may involve ongoing reliance by the new TikTok on a ByteDance algorithm and application that could allow continued CCP control or influence."
Indeed, the law is explicit: there can be no operational relationship between the new owners and ByteDance, including cooperation on the algorithm or data sharing. However, the final determination of what constitutes a "qualified divestiture" ultimately rests with the president, who is empowered to decide—through an interagency process—whether TikTok is "no longer being controlled by a foreign adversary." In this case, the administration is confident that the deal complies with both U.S. and Chinese legal requirements, though Chinese authorities must still formally sign off on the proposal, and final regulatory approval is needed in Washington.
The road to this moment has been anything but smooth. Former President Trump attempted to ban TikTok during his first term, but the effort became mired in legal challenges. In 2024, President Joe Biden signed bipartisan legislation requiring ByteDance to sell TikTok to a U.S. owner within a year or face a shutdown. The Supreme Court upheld the law in early January 2025, but enforcement was repeatedly delayed by executive orders, including a last-minute pause that resulted in TikTok being suspended in the U.S. for less than a day.
As details of the new deal have emerged, the White House has sought to reassure both lawmakers and the public. Press secretary Karoline Leavitt told CBS News that, despite the changes, "global content will still be accessible for American users." This addresses a key concern raised by TikTok's lawyers, who warned that a complete severing of ties with ByteDance would force the app to rebuild its algorithm from scratch—a process that could take years and fundamentally alter the user experience. They argued that without any ability to share data with ByteDance, American users would be cut off from videos shared by users around the world, and vice versa.
Oracle's involvement is particularly noteworthy. The company, co-founded by Larry Ellison, brings not only technical expertise but also a direct link to the broader U.S. media landscape—Ellison's son, David Ellison, is chairman and CEO of Paramount Skydance, which owns CBS. This adds another layer of American oversight to a platform that has become a cultural phenomenon, especially among younger generations.
Still, questions linger about how the new arrangement will function in practice. Christopher Krebs, former director of the U.S. Cybersecurity and Infrastructure Security Agency and now a CBS News contributor, observed that "there are still some questions on how operationally ... it's going to play out and what the user is going to experience on a daily basis." The administration has promised to engage "vigorously" with lawmakers to demonstrate "what a great deal this is" for Americans, emphasizing the enhanced security and oversight mechanisms now in place.
Meanwhile, the clock is ticking. The executive order expected Thursday would delay enforcement of the TikTok ban for an additional 120 days—until December 16, 2025—to allow time for the new arrangement to be finalized. Should the deal fall through, ByteDance would lose access to U.S. app stores and web-hosting services, effectively ending TikTok's operations in the country.
China's response to the proposed deal has been more reserved, with officials offering only vague public comments about what has been agreed to. Their approval remains a critical hurdle. For now, though, the White House is pressing ahead, determined to resolve a dispute that has roiled Washington, Silicon Valley, and Beijing alike.
As the dust settles, American TikTok users, investors, and policymakers alike are left to wonder: will this new arrangement finally put their concerns to rest, or is it just the latest twist in an ongoing digital drama? One thing is certain—the world will be watching as this unprecedented experiment in tech regulation, international business, and national security unfolds.
