White House Press Secretary Karoline Leavitt announced that the United States is set to gain control over TikTok’s algorithm as part of the impending acquisition of the social media platform’s US operations. Leavitt expressed confidence that the deal will be finalised imminently, stating that President Trump’s administration is actively negotiating with Chinese officials to secure a signed agreement.
The proposed arrangement suggests that Oracle, a major tech company, will oversee data and privacy management for TikTok in the US. Leavitt indicated that the board of TikTok will predominantly consist of American members, with six out of seven seats filled by US individuals. This development follows a call between President Trump and Chinese leader Xi Jinping, where they reportedly made substantial progress towards concluding a deal that involves selling a significant portion of TikTok’s US assets to American investors.
In April 2024, Congress enacted a bill restricting TikTok’s operations within the US, stipulating that the platform could continue its services only if it divested around 80% of its American assets. TikTok had previously faced operational threats, with the app briefly going dark in January 2024, but extensions granted by Trump allowed it to continue functioning while negotiations progressed.
The app is immensely popular, boasting approximately 170 million users in the US, predominantly among younger demographics, which has proven crucial in recent electoral support for Republican candidates.
The acquisition effort is being spearheaded by a consortium including Oracle, along with investment firms Andreessen Horowitz and Silver Lake, potentially leaving a small share for Chinese investors. Control of TikTok’s algorithm, which significantly influences content visibility on the platform, has been highlighted as a critical element for its success and a key point for American stakeholders.
Despite TikTok’s parent company, ByteDance, asserting that it would not sell the app, the renewed negotiations following previous tariff disputes have reignited discussions about addressing US national security concerns.
The anticipated deal sets the stage for a significant diplomatic encounter, as Trump and Xi are expected to meet in person next month during the APEC Summit in South Korea.