TikTok logo on smartphone screen and back silhouette US President Donald Trump. Tiktok is a social media platform originating from China. New York, USA. 10.12.2024. By Shutterstock.com / miss.cabul.

Politics

Trump Secures TikTok Deal, Seizing Algorithm Control and Reshaping US-China Relations

U.S. to control TikTok‘s algorithm. American investors to get majority stake, deal finalized soon after Trump-Xi call.

byEditorial Staff

September 20, 2025, 10:23 PM

Executive Summary

A deal to acquire TikTok’s U.S. operations, granting the United States control over the app’s powerful algorithm, is expected to be finalized “in the coming days.”

The agreement places TikTok’s U.S. data and privacy under Oracle’s leadership, with American investors securing six of seven board seats and a majority stake.

This deal, progressing after President Donald Trump’s “very productive call” with Chinese leader Xi Jinping, marks a diplomatic breakthrough and sets the stage for their first in-person meeting since Trump returned to office.

The Story So Far

The impending acquisition of TikTok’s U.S. operations stems from a congressional mandate passed in April 2024, which threatened a ban unless approximately 80% of the app’s assets were sold to American investors, driven by national security concerns over data control and the app’s powerful proprietary algorithm. This deal, allowing U.S. control over the algorithm and a majority stake for American investors, also marks a significant diplomatic breakthrough between the U U.S. and China, following previously stalled discussions due to tariffs imposed by President Trump.

Why This Matters

The impending finalization of the TikTok deal represents a significant shift in data control and national security, placing the app’s powerful algorithm and U.S. user data under American oversight, thereby addressing long-standing concerns about foreign influence. This agreement also signals a notable diplomatic breakthrough between the U.S. and China, potentially easing bilateral tensions and paving the way for future high-level discussions between President Trump and Chinese leader Xi Jinping, despite previous trade disagreements.

Who Thinks What?

The White House and President Donald Trump view the impending TikTok deal as a successful agreement that will grant the United States control over the app’s operations, data, and algorithm, also marking a diplomatic breakthrough with China.

The U.S. government, through prior congressional legislation and the current deal, aims to address concerns about foreign control of the social media app by ensuring American investors take a majority stake and that U.S. entities like Oracle lead data and privacy for TikTok’s U.S. operations.

The White House announced Saturday that a deal to acquire the U.S. operations of the popular social media app TikTok is expected to be finalized “in the coming days,” granting the United States control over the app’s powerful algorithm. This development follows a “very productive call” on Friday between President Donald Trump and Chinese leader Xi Jinping, progressing an agreement that will see American investors take a majority stake in the platform’s U.S. assets.

Deal Structure and Control

White House Press Secretary Karoline Leavitt confirmed that the agreement would place data and privacy for TikTok’s U.S. operations under the leadership of tech giant Oracle. She specified that Americans would secure six of the seven board seats for the platform’s U.S. entity, with the deal led by a consortium including Oracle, Andreesen Horowitz, and Silver Lake. This arrangement could leave the remaining 20 percent of assets with Chinese investors.

Background to the Acquisition

The impending agreement follows months of negotiations and President Trump granting multiple extensions to a congressional mandate. In April 2024, Congress passed legislation that would have banned TikTok in the U.S. unless approximately 80 percent of its assets were sold to American investors. The app, which boasts around 170 million U.S. users, continued operations during these delays.

A key component of the acquisition is U.S. control over TikTok’s algorithm, which dictates the content users see on their “For You” feeds. This proprietary technology is widely regarded as the “special sauce” that has fueled the app’s immense popularity and proven challenging for competitors to replicate.

Political and Diplomatic Implications

The app’s significant user base, particularly among young people, has drawn political attention, with Pew Research indicating that this demographic offered more support to President Trump in the 2024 election than in previous cycles. The deal’s progression also marks a diplomatic breakthrough between the two global powers.

Discussions between the U.S. and China regarding a potential TikTok deal had previously stalled after President Trump imposed substantial tariffs on Chinese goods in April. The expected finalization of this agreement has now set the stage for the first in-person meeting between President Trump and Chinese leader Xi Jinping since Trump returned to office.

Upcoming Summit

The leaders are anticipated to meet next month at the APEC Summit in South Korea, underscoring the broader implications of this technology deal for U.S.-China relations and future diplomatic engagements.