In a move that has captivated both Washington and Silicon Valley, President Donald Trump has signed a sweeping executive order clearing the way for TikTok to continue operating in the United States—albeit under American control. The decision, announced on September 26, 2025, comes after months of heated negotiations, political wrangling, and mounting anxieties over data privacy and foreign influence. The order permits a consortium of U.S.-led investors to acquire TikTok’s American operations from its Chinese parent company, ByteDance, pending approval from Chinese authorities and the resolution of final transactional details, as reported by the Associated Press and NPR.
Trump, standing at a White House ceremony, declared that Chinese President Xi Jinping had agreed to the arrangement. However, the Chinese embassy in Washington has yet to confirm this assertion, leaving a sliver of uncertainty hanging over the deal’s fate. “There was some resistance on the Chinese side, but the fundamental thing that we wanted to accomplish is that we wanted to keep TikTok operating, but we also wanted to make sure that we protected Americans’ data privacy as required by law,” Vice President JD Vance explained, according to the Associated Press. His comments underscored the administration’s central objective: to maintain TikTok’s presence for millions of American users while erecting robust safeguards against foreign access to sensitive data.
The agreement follows legislation signed last year by President Joe Biden, which mandated that TikTok’s U.S. assets be sold or face a nationwide ban. Trump, since returning to office, has issued several extensions to allow negotiations to proceed, and this latest order grants negotiators an additional 120 days to close the deal. The White House insists that the proposed structure satisfies the national security requirements of the law, even as some critics and analysts remain skeptical about the effectiveness of the new arrangements.
The stakes are high, especially given TikTok’s surging cultural influence. According to fresh data from the Pew Research Center, 43% of U.S. adults under 30 now get their news from TikTok—surpassing even YouTube, Instagram, or Facebook. The app’s reach is not just a matter of entertainment; it’s a major source of information and community for a generation that has grown up with the platform’s signature short videos and viral trends.
Under the terms outlined by the White House and echoed in NPR’s reporting, TikTok will be spun into a new joint venture dominated by American investors. Tech giant Oracle and private equity firm Silver Lake are among the lead partners, with U.S. investors holding roughly 80% of the ownership. ByteDance, for its part, will retain less than 20%—a minority stake reserved for foreign shareholders. ByteDance will also maintain a single board seat, but crucially, will not participate in security matters, a move designed to assuage fears of Chinese interference.
The cast of characters involved in the deal reads like a who’s who of American business and media. Oracle’s co-founder Larry Ellison, media magnate Rupert Murdoch, and Dell founder Michael Dell are all prominent players. Oracle, in particular, will take a leading role in managing the security of Americans’ data and overseeing how the algorithm pushes content to users. “The U.S. company will have control over how the algorithm pushes content to users, and that was a very important part of it. We thought it was necessary for the national security element of the law. We also just think it’s important to protect American users,” Vice President Vance stated from the Oval Office, as quoted by NPR.
But what does this mean for the average TikTok user? For most, the changes will be invisible. Users won’t need to download a new app; the technical and ownership shifts will happen quietly in the background. “These changes are going to happen in the background, and honestly, you probably won’t notice them,” NPR’s Bobby Allyn explained. The American version of TikTok will run on a retrained algorithm built entirely on U.S. data, with content moderation and oversight handled domestically. Still, some skepticism remains, as ByteDance will continue to license a version of its algorithm to the American entity, a nuance that has not gone unnoticed by critics.
Concerns about TikTok as a possible tool for Chinese influence or surveillance have long animated the debate in Congress and the intelligence community. While there has never been public evidence of the app being used to push Beijing’s agenda or spy on Americans, the mere possibility was enough to spur lawmakers to demand a sale or ban. The new order attempts to establish a “firewall” between U.S. operations and Chinese ownership. Yet, as NPR noted, ByteDance’s ongoing stake and continued licensing of the algorithm remain contentious points, leaving some to wonder whether the firewall is as sturdy as advertised.
Oracle’s involvement is also significant, both technically and politically. Even before this deal, Oracle had secured TikTok as a major customer for its cloud data storage services. Now, with Ellison’s close relationship with Trump and a major stake in the app, Oracle’s influence over American media and entertainment is poised to grow. “Having sway over TikTok only extends the Ellison family’s reach into more American media and entertainment,” NPR observed, noting that Larry Ellison’s son, David, now runs Paramount and CBS and is eyeing further media acquisitions.
Civil liberties advocates are watching closely. David Greene of the Electronic Frontier Foundation warned that TikTok users may “get the editorial policies of the people who now have control of the company,” raising questions about how criticism of Trump or his allies will be handled on the platform. With figures like Rupert Murdoch and Larry Ellison in the mix, the possibility of political or business interests shaping TikTok’s content moderation is very much on the radar.
From Beijing’s perspective, the forced divestment was once decried as “robbery.” Yet, with broader U.S.-China trade talks underway, Chinese officials have softened their position. Some analysts argue that TikTok itself is less strategically important than access to advanced U.S. technologies. “TikTok, by contrast, is a maturing consumer app with diminishing strategic weight,” said Dimitar Gueorguiev, a political science professor at Syracuse University, as cited by the Associated Press.
For now, TikTok’s future in the United States hinges on whether the proposed joint venture can be finalized and whether its millions of users will embrace the platform under new ownership. Jasmine Enberg, an analyst at eMarketer, summed up the uncertainty: “Social media is just as much about the culture as it is the technology, and how users will take to new ownership and potentially a new version of the app is still an open question.”
As the clock ticks on the 120-day window for closing the deal, all eyes remain on Washington, Beijing, and the boardrooms of America’s tech giants. For the millions who scroll, share, and laugh on TikTok daily, the app’s fate is a test case for how global tech, politics, and culture intersect—and who ultimately gets to shape the stories America tells itself.
