Trump Allies to Take Control of TikTok Under New US Deal

Former US President Donald Trump has signed an executive order that could dramatically reshape TikTok’s future in America, handing control of the app to a group of his close allies and drastically reducing Chinese ownership.

The deal, announced Thursday at a White House ceremony, would cut ByteDance’s stake in TikTok’s US operations to just 20 percent, with the remainder controlled by US investors aligned with the president. Beijing has since called for “open, fair” treatment of the Chinese-owned platform.

TikTok, which has more than 170 million users in the United States, nearly half of the country’s population, has long been under scrutiny in Washington over concerns that its Chinese parent company could be compelled to share data with Beijing.

Trump’s New Approach

At the signing ceremony, Trump described the agreement as a win for both national security and TikTok’s millions of users.

“The proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security,” Trump said.

He revealed that the new US-based entity would be controlled by “highly sophisticated” investors, including Oracle founder Larry Ellison, tech magnate Michael Dell, and media mogul Rupert Murdoch.

“If I could make it 100 percent MAGA I would, but it’s not going to work out that way unfortunately. No… every group, every philosophy, every policy, will be treated very fairly,” Trump told reporters, insisting that the app would not be used as a political tool.

Prominent investment firms like Silver Lake Management and Andreessen Horowitz are also believed to be part of the consortium.

Algorithm to Be ‘Continuously Monitored’

A key part of the agreement involves TikTok’s powerful recommendation algorithm, often described as the platform’s “secret sauce.” Under the deal, the algorithm will be developed and operated entirely in the United States under strict oversight.

A White House official said the algorithm would be “continuously monitored” to ensure it is free from foreign influence.

The move follows legislation signed into law under President Joe Biden, which forced ByteDance to either divest its US operations or face a nationwide ban. Trump, during both his presidencies, repeatedly delayed enforcement through executive orders but has now pushed forward with a solution that extends the compliance deadline once again — this time by 120 days, with a new cut-off date of January 23, 2026.

Trump also revealed that Chinese President Xi Jinping personally approved the deal during a recent phone call.

“I have great respect for President Xi, and I very much appreciate that he approved the deal, because to get it done properly, we really needed the support of China,” Trump said.

Following the conversation, Chinese state broadcaster CCTV reported that Xi emphasized the importance of market-based negotiations and compliance with Chinese law.

China’s foreign ministry on Friday echoed this stance, with spokesman Guo Jiakun saying: “We hope the US will provide an open, fair, and non-discriminatory business environment for Chinese companies investing in the United States.”

Looking Ahead

Vice President JD Vance, who led negotiations on the US side, said the deal values TikTok’s new US entity at roughly $14 billion, though the final price will be determined by the investors.

For now, TikTok has not publicly commented on the arrangement. Analysts say the deal could set a precedent for how the US handles Chinese-owned tech companies going forward, balancing national security concerns with the need to preserve innovation and consumer choice.

If completed, the transaction would mark one of the most significant government interventions in the social media industry and could reshape the platform’s identity heading into the 2026 elections.

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