WASHINGTON — President Donald Trump on Thursday unveiled an agreement that will place TikTok under the control of U.S. investors, ending months of uncertainty over the fate of the popular China-based app.
The deal, valued at $14 billion, follows bipartisan legislation passed last spring that required TikTok to sever ties with its Beijing parent company, ByteDance, or face a nationwide ban.
Algorithm at the Center of Security Concerns
Vice President J.D. Vance, standing alongside Trump during the Oval Office announcement, emphasized that the deal ensures TikTok’s proprietary algorithm will now fall under American oversight.
“This deal really does mean Americans can use TikTok but actually use it with more confidence than they had in the past because their data is secure and it won’t be used as a propaganda weapon like it has in the past,” Vance said.
Oracle will be among the U.S. investors, Trump confirmed, though he did not disclose the full list of backers.
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Role of China and Xi Jinping
Trump also claimed Chinese President Xi Jinping approved the arrangement, though Beijing has not yet publicly confirmed the terms. The agreement marks a rare moment of cooperation amid escalating U.S.-China tensions over technology and national security.
Legal and Political Background
Congress originally granted TikTok a 270-day deadline to divest from ByteDance. Instead, the company pursued a legal challenge on First Amendment grounds, which failed in a unanimous Supreme Court ruling that cited credible national security risks.
The app briefly became unavailable in U.S. app stores in January before the Trump administration assured Apple and Google that enforcement would not proceed while negotiations continued.
What Comes Next
Further details on the ownership structure and governance of the U.S.-based TikTok entity are expected in the coming days. Lawmakers from both parties have signaled they will scrutinize the deal closely to ensure compliance with national security provisions.
For now, TikTok’s 170 million U.S. users appear set to retain access to the platform, albeit under a significantly altered ownership framework.
