Trump claims a TikTok deal is done. Who would own it, and how would it work?

September 25, 2025

President Trump has approved a deal that will allow TikTok to continue operating in the US by transferring control of its US operations to American investors in a new $14 billion venture. The arrangement requires US investors to control TikTok's algorithm, with Americans holding six of seven board seats and China owning less than 20% of the joint venture. This deal aims to address national security concerns that prompted Congress to pass a law in April 2024 requiring ByteDance to sell TikTok or face a US ban.

Who is affected

170 million US TikTok users
US content creators who earn their living on the app
ByteDance (TikTok's Chinese parent company)
US investors including Oracle, Larry Ellison, Rupert Murdoch, Michael Dell, and Silver Lake
TikTok's competitors (Instagram Reels, YouTube Shorts, RedNote)

What action is being taken

Trump is signing an executive order approving the deal for US investors to take over TikTok's US operations
A new company valued at $14 billion is being formed to control TikTok in the US
"Trusted security partners" are being established to monitor software updates, algorithms, and data flows
Oracle is continuing to store TikTok's American user data on US-based servers
The new joint venture is seeking "patriotic" investors

Why it matters

The deal prevents a potential ban of TikTok in the US, where users spend an average of 51 minutes per day on the app
It addresses national security concerns about ByteDance potentially sharing US user data with the Chinese government
It establishes a new ownership structure with less than 20% Chinese ownership and American control of the algorithm
The arrangement aims to comply with the 2024 law requiring ByteDance to sell to a US-approved buyer or face shutdown
It represents a significant restructuring of one of the world's most popular social media platforms

What's next

A list of the "sophisticated" investors will soon be released
The Chinese government is expected to issue an export license for the TikTok algorithm
Trump will discuss the deal with Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea at the end of October

Read full article from source: BBC