What's Happening?
President Trump is set to sign a deal transferring TikTok's US operations to a new joint venture, reducing ByteDance's stake to less than 20%. This move comes after concerns that TikTok was allegedly passing personal information to China, prompting the enactment of the 'TikTok Ban Act' under the Biden administration in 2024. The agreement, announced in September 2025, aims to address these concerns by ensuring that American user data is stored and managed exclusively within the US by Oracle. The deal also includes provisions for US control over TikTok's video feed recommendation engine, with a board of directors comprising mostly American investors.
Why It's Important?
The deal is significant as it addresses national security concerns related to data privacy and foreign influence. By reducing ByteDance's stake and involving prominent American business leaders like Larry Ellison and Michael Dell, the agreement aims to safeguard American user data and prevent foreign manipulation of content. This move could set a precedent for how the US handles foreign-owned tech companies, potentially influencing future policy decisions and international business relations.
What's Next?
If the deal is finalized, TikTok's US operations will be managed by a new joint venture, with ByteDance holding a minority stake. Oracle will oversee the security and safety of the platform, ensuring compliance with US regulations. The board of directors will include six American investors, although their identities have not been disclosed. The deal's success could lead to further scrutiny and regulation of foreign-owned tech companies operating in the US.
Beyond the Headlines
The TikTok deal highlights broader issues of data privacy and national security in the digital age. It underscores the growing tension between the US and China over technology and information control. The involvement of high-profile American business leaders suggests a strategic effort to align corporate interests with national security objectives, potentially influencing future collaborations between government and private sectors.
