After months of uncertainty, the TikTok deal could be finalized in the coming days, according to the White House. Americans are set to gain control of the popular social media platform’s algorithm and US operations, a move that has sparked intense discussion about data privacy, national security, and the future of the app in the United States.
White House Press Secretary Karoline Leavitt confirmed on Saturday that the United States would oversee TikTok’s algorithm as part of the acquisition of the app’s US operations. “We are 100% confident that a deal is done. Now that deal just needs to be signed, and the president’s team is working with their Chinese counterparts to do just that,” Leavitt said during an interview on Fox News.
She emphasized that the agreement is expected to be signed “in the coming days” and that US data and privacy oversight will be led by tech giant Oracle. Leavitt also revealed that Americans will hold six of the seven seats on TikTok’s board, giving US stakeholders a controlling interest in the platform’s operations.
The announcement comes shortly after President Donald Trump said on Friday that he and China’s leader Xi Jinping had “a very productive call,” making progress toward finalizing a deal to sell the majority of TikTok’s US assets to American investors.
TikTok Acquisition Deal Moves Forward
The TikTok deal marks a major turning point for the social media app, which has long been under scrutiny in the United States due to national security concerns. In April 2024, Congress passed a bill banning TikTok but included a provision allowing the app to continue operating in the US if it sold roughly 80% of its assets to American investors. TikTok briefly went dark on January 18, the day before the Foreign Adversary Controlled Applications Act went into effect and just two days before Trump assumed office.
Despite these legal hurdles, the app continued to operate, with Trump granting four extensions to delay the shutdown and provide his administration more time to negotiate a solution.
Control of TikTok Algorithm and US Operations
A central element of the TikTok acquisition is control over the algorithm that powers the app’s “For You” feed. Often described as the app’s “special sauce,” the algorithm determines what users see and has played a key role in TikTok’s popularity among US users. ByteDance, TikTok’s Chinese parent company, had previously resisted selling the app with or without its algorithm, making this aspect of the deal particularly significant.
Under the new arrangement, Oracle, Andreessen Horowitz, and Silver Lake will lead a consortium of investors overseeing TikTok US operations. While Americans will control the majority of the board seats, Chinese investors are expected to retain a 20% stake in the platform.
Political Background and Legislative Context
The TikTok US ban and subsequent acquisition negotiations have been closely tied to broader US-China relations. Talks between the two countries had stalled after Trump imposed large tariffs on Chinese goods in April. Once tariffs were reduced, discussions resumed, with both Trump and Xi expressing interest in re-engaging over TikTok. Treasury Secretary Scott Bessent noted that several details still needed to be worked out, including key national security concerns.
The expected TikTok deal has set the stage for a historic in-person meeting between Trump and Xi at the APEC Summit in South Korea next month, the first since Trump returned to office.
Investor Consortium and Chinese Stake
The investor group leading the TikTok acquisition includes some of Silicon Valley’s biggest names. Oracle will play a critical role in ensuring US control over user data and privacy, while Andreessen Horowitz and Silver Lake will provide additional financial and operational oversight. The structure allows Chinese investors to maintain a minority stake, satisfying some of ByteDance’s interests while addressing US security concerns.
Leavitt stressed that the deal is designed to give Americans control over both TikTok US operations and its algorithm, ensuring that the platform operates transparently and safely within the United States.
National Security and Future Outlook
TikTok’s popularity in the US is massive, boasting around 170 million users, many of whom are young adults and teens. According to Pew Research, this demographic showed more support for the Republican candidate in the 2024 election than in previous cycles, highlighting the app’s cultural influence.
By gaining control of the algorithm and US operations, the TikTok acquisition seeks to address longstanding national security concerns. Analysts suggest this could set a precedent for how foreign-owned apps operate in the United States in the future.
The deal is now in its final stages, with expectations that signatures will be exchanged shortly, marking the start of a new era for TikTok in America. If successful, this TikTok deal will be one of the most high-profile tech acquisitions in recent years, ensuring that the platform remains accessible to US users while safeguarding their data and privacy.
Conclusion:
The TikTok US acquisition highlights the intersection of technology, politics, and national security. With US control over the algorithm and operations, Oracle and other investors leading oversight, and the majority of board seats held by Americans, the deal promises to balance user accessibility with stringent data protection. As the signing approaches in the coming days, all eyes will remain on the TikTok deal and its implications for social media in the United States.
