WASHINGTON (BN24) — President Donald Trump on Thursday signed an executive order that lays the groundwork for a TikTok deal expected to shift majority ownership of the popular video app into American hands, a move designed to resolve longstanding national security concerns over its Chinese parent company ByteDance.
The agreement, still pending final legal and financial adjustments, would reduce ByteDance’s stake to less than 20% while transferring 80% ownership to American investors. Trump said Oracle and its co-founder Larry Ellison would play a central role in the new structure, alongside tech entrepreneur Michael Dell and media mogul Rupert Murdoch. Vice President JD Vance confirmed that additional details about the investors will be disclosed in the coming weeks.
“This is going to be American-operated all the way,” Trump said at the signing ceremony. He credited Chinese President Xi Jinping for approving the framework, adding that cooperation from Beijing was essential to finalize the arrangement.
The deal also grants American investors control of TikTok’s prized recommendation algorithm, the technology behind the app’s influential For You page that transformed online content and advertising. Asked whether he hoped the algorithm would promote more MAGA-related content, Trump said he favored it but emphasized that the platform would remain open to “every group, every philosophy, every policy.”
TikTok did not immediately comment on the order.
The agreement follows years of scrutiny from U.S. officials who accused ByteDance of posing risks by potentially sharing user data with Beijing or allowing Chinese influence over the app’s content feeds. In May, TikTok was fined €530 million by Ireland’s Data Protection Commissioner for mishandling user data, further intensifying global concerns.
TikTok’s future in the United States has been uncertain since President Joe Biden signed a bipartisan law requiring ByteDance to divest or face a nationwide ban. Although the law was upheld by the Supreme Court and initially slated to take effect in January, enforcement was repeatedly delayed as Trump used executive actions to push back the deadline. The latest order extends the grace period another 120 days, until Jan. 23, to allow time for the divestiture to be completed.
Trump acknowledged that his decision was influenced by small business owners who rely on TikTok for advertising. “Small businesses have become very successful because of TikTok, and we didn’t think of that,” he said.
The platform, estimated to have 170 million U.S. users, has drawn bipartisan criticism in past years. But lawmakers who once championed a ban shifted course after widespread public opposition. Trump himself has also reversed positions, initially attempting to block TikTok during his first term before later embracing it in his 2024 campaign, even joining the platform to reach younger voters.
The executive order marks a significant turning point in the ongoing battle over TikTok’s ownership and could chart the company’s future in the American market.
