A significant development has unfolded, ensuring the continued operation of TikTok in the United States. An executive order, signed by President Trump, paves the way for the popular social video app to remain accessible to its vast user base within the country.
The decision comes after mounting pressure on ByteDance, TikTok’s parent company, to address security concerns arising from its ties to China. The threat of a nationwide ban loomed, and Congress had even passed legislation aimed at implementing such a ban in January. However, Trump’s repeated interventions have consistently prevented its enforcement.
The agreement, reportedly approved by China’s President Xi Jinping, will see TikTok’s U.S. operations transition to a joint venture. This venture will be primarily controlled by an American investor group, with ByteDance and its affiliates holding less than 20% ownership. This structure is designed to safeguard the data of the approximately 170 million American users who actively engage with the platform, known for its entertaining and viral video content.
The executive order emphasizes the protection of American users from data misuse and foreign influence, while simultaneously allowing creators, businesses, and viewers to continue using the app. Previously advocating for a ban, Trump now believes the deal successfully addresses security concerns, citing American ownership as the primary reason for his change of stance.
Key figures involved in the deal reportedly include Oracle co-founder Larry Ellison, Dell Technologies Chief Executive Michael Dell, and media mogul Rupert Murdoch. Vice President JD Vance estimated the value of the new entity controlling TikTok’s U.S. operations to be around $14 billion. Murdoch’s participation is expected to involve investment from Fox Corp., which owns Fox News.
Under the terms of the agreement, the algorithms and code governing TikTok will be under the control of the joint venture. Furthermore, the secure storage of sensitive U.S. user data will be managed by a U.S. cloud computing company. White House Press Secretary Karoline Leavitt confirmed that Oracle would lead the data and privacy efforts within the U.S.
Ellison, described as a Trump ally, is also reportedly preparing a bid for Warner Bros. Discovery, following a takeover of Paramount. This deal aims to ensure that the American investors control the algorithm and prevent the platform from being used as a tool for foreign propaganda, according to Vance. Details of the deal are still being finalized, with Chinese and U.S. officials having until December 16th to iron out the specifics.