TikTok nears US takeover deal as Washington secures control
The proposed agreement involves US companies managing TikTok’s algorithm and Americans holding the majority of board seats.
The White House has revealed that US companies will take control of TikTok’s algorithm, with Americans occupying six of seven board seats overseeing the platform’s operations in the country. A final deal, which would reshape the app’s US presence, is expected soon, though Beijing has yet to respond publicly.
Washington has long pushed to separate TikTok’s American operations from its Chinese parent company, ByteDance, citing national security risks. The app faced repeated threats of a ban unless sold to US investors, with deadlines extended several times under President Donald Trump. The Supreme Court also upheld legislation requiring ByteDance to divest, though enforcement was delayed earlier this year.
According to the White House, data protection and privacy for American users will be managed by Oracle, chaired by Larry Ellison, a close Trump ally. Oracle will also oversee control of TikTok’s algorithm, the key technology that drives what users see on the app. Ellison’s influence in tech and media has grown, especially after his son acquired Paramount, which owns CBS News.
Trump claimed he had secured an understanding on the deal in a recent call with Chinese President Xi Jinping, describing the exchange as ‘productive.’ However, Beijing’s official response has been less explicit. The Commerce Ministry said discussions should proceed according to market rules and Chinese law, while state media suggested China welcomed continued negotiations.
Trump has avoided clarifying whether US investors need to develop a new system or continue using the existing one. His stance on TikTok has shifted since his first term, when he pushed for a ban, to now embracing the platform as a political tool to engage younger voters during his 2024 campaign.
Concerns over TikTok’s handling of user data remain at the heart of US objections. Officials at the Justice Department have warned that the app’s access to US data posed a security threat of ‘immense depth and scale,’ underscoring why Washington is pressing to lock down control of its operations.
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