The White House has unveiled details of a major deal that would transfer control of TikTok’s U.S. operations — including its powerful recommendation algorithm — to American entities, marking a significant shift in the ongoing battle over data privacy and national security.
Under the proposed agreement, U.S. companies will control the algorithm that drives TikTok’s content to its 170 million American users. Oracle, the American tech giant chaired by Trump ally Larry Ellison, will manage data privacy and storage. Meanwhile, six out of seven board members overseeing TikTok’s U.S. business will be American citizens.
White House Press Secretary Karoline Leavitt announced that the deal could be finalized “in the coming days,” though China has yet to officially respond. The Chinese government has maintained a more cautious stance, with a recent statement from the Commerce Ministry emphasizing its support for market-based negotiations that align with Chinese law.
The U.S. government has long viewed TikTok’s Chinese parent company, ByteDance, as a national security threat due to its potential access to sensitive American user data. In early 2024, Congress passed a law requiring ByteDance to divest from TikTok’s U.S. operations or face a nationwide ban. Although the app briefly went offline, enforcement was delayed multiple times by President Donald Trump — most recently pushing the deadline to December.
Trump recently stated that he and Chinese President Xi Jinping had a “productive” phone call and that Xi approved the deal, though no confirmation has been issued from Beijing. State-run outlet Xinhua reported only that China “welcomes negotiations” regarding TikTok’s future.
One of the key sticking points in the negotiations has been the ownership and control of TikTok’s content algorithm, widely considered the engine of its popularity. It remains unclear whether U.S. firms will rebuild a new algorithm or continue using the existing one under American oversight.
Trump, who initially pushed to ban TikTok during his first term, reversed his stance during the 2024 campaign, using the platform to connect with younger voters.
Meanwhile, Larry Ellison’s growing influence is under scrutiny, especially after his son David Ellison acquired media giant Paramount. The Ellison family’s expanding presence in both tech and media adds another layer of complexity to the deal.
This agreement, if finalized, would represent one of the most significant efforts by the U.S. to assert control over a major foreign-owned social media platform.
