TikTok to Form US-Based Entity With American Control and Oversight
In a major step toward resolving national security concerns, the White House announced that tech giant Oracle will oversee the security and management of TikTok’s US algorithm, as part of a broader deal to shift the Chinese-owned platform’s American operations into a US-based entity. A senior White House official revealed that the new structure would be led by a majority-American board of directors, and TikTok’s powerful content recommendation algorithm will be moved into this new US joint venture.
The algorithm will be fully inspected, retrained, and operated on US soil, exclusively using American user data, the official said. The deal aims to ensure the algorithm cannot be influenced by foreign actors, particularly the Chinese government — a concern that has fueled years of bipartisan scrutiny in Washington. Oracle will function as the platform’s designated security provider, tasked with the ongoing monitoring of the system to guarantee compliance with US data protection standards.
This proposed deal follows a law passed under President Joe Biden that mandates TikTok’s Chinese parent company, ByteDance, divest its US operations or face a complete ban by early 2025. Trump, now in his second term, is expected to sign an executive order this week, stating that the new arrangement satisfies the national security requirements outlined in the 2024 legislation.
New American Investors to Take Over as ByteDance Reduces Stake
The restructured TikTok US will see ByteDance’s ownership reduced to under 20%, with the majority stake going to a mix of existing US and global firms, along with new American investors unaffiliated with the Chinese parent company. High-profile figures, including Lachlan Murdoch, Larry Ellison, and Michael Dell, are among the names floated as potential investors in the new venture. Media tycoon Rupert Murdoch and his son Lachlan are also reportedly in discussions to secure seats on the board.
White House Press Secretary Karoline Leavitt confirmed that six of the seven board seats will be filled by American representatives, ensuring majority control. While the full investor roster has not been finalized, it will include major financial players like Oracle and Silver Lake, a private equity firm. The US government, however, will not hold a board seat or a “golden share” in the new company.
An enforcement delay has been granted until mid-December, giving the parties time to complete the deal. Trump’s forthcoming executive order will pause enforcement for an additional 120 days, allowing the finalized investor group to close the agreement. The valuation of TikTok’s US assets is expected to be in the multi-billion-dollar range.
The deal marks rare diplomatic progress between the US and China after months of deadlock. Officials noted that China is expected to approve the deal, and no further talks are anticipated. The move is also seen as an attempt by Trump to avoid banning TikTok outright — an app that boasts over 170 million users in the US — by ensuring its operations are fully controlled by American stakeholders and free from foreign influence.
