Trump signs order to advance TikTok spin-off tied to his allies

President Donald Trump has signed an executive order that paves the way for TikTok to remain in the US, despite a law requiring its Chinese owner, ByteDance, to divest the app or face a ban. The order grants negotiators 120 more days to finalise a deal, marking the fifth time Trump has delayed enforcement of the law passed by Congress and upheld by the Supreme Court.

The deal would transfer most of TikTok’s US operations to a new company controlled by American investors. Among them are Oracle co-founder Larry Ellison, private equity firm Silver Lake, and Susquehanna International’s Jeff Yass, a prominent Republican donor. An Emirati consortium known as MGX would also participate, reflecting the Gulf’s growing role in global tech investments. ByteDance would keep a minority stake and retain control of the app’s recommendation algorithm, a sticking point for lawmakers initially pushing for the sale.

Speaking from the Oval Office, Trump described the incoming management as ‘very smart Americans’ and said Chinese President Xi Jinping had approved the arrangement. Asked whether TikTok would favour pro-Trump content, the president joked that he would prefer a ‘100 percent MAGA’ feed but insisted the app would remain open to all perspectives.

Critics argue the arrangement undermines the very law that forced ByteDance to sell. By preserving a Chinese stake and leaving ByteDance in charge of the algorithm, the deal raises questions about whether the national security concerns that motivated Congress have truly been addressed. Some legal scholars say the White House’s role in handpicking buyers aligned with Trump’s political allies only adds to fears of political influence over a platform used by 170 million Americans.

The negotiations also highlight TikTok’s enormous influence and profit potential. Investors worldwide, including Rupert Murdoch’s Fox Corp., expressed interest in a slice of the app. TikTok’s algorithm, which will still be trained in China but adapted with US data, will remain central to the platform’s success. Oracle will continue to oversee American user data and review the algorithm for security risks.

The unusual process has fueled debate about political power and digital influence. Critics like California Governor Gavin Newsom warned that placing TikTok in the hands of Trump-friendly investors could create new risks of propaganda. Others note that the deal reflects less of a clear national security strategy and more of a high-stakes convergence of money, politics, and global tech rivalry.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!