TikTok Reaches Deal to Stay in the U.S.
TikTok has struck a preliminary agreement with American investors that will allow the popular video-sharing app to continue operating in the United States, according to senior White House officials. The deal is designed to address long-standing concerns about data security and Chinese ownership while preserving access for the platform’s 170 million U.S. users.
A Joint Venture Under U.S. Control
The agreement, announced Sept. 22, would spin off TikTok’s U.S. operations into a new joint venture controlled by a group of American investors. While officials declined to identify the full list of stakeholders, they confirmed that the investor pool includes the private equity firm Silver Lake.
President Donald Trump, speaking in a Fox News interview on Sept. 21, added that billionaire investor Michael Dell, as well as media mogul Rupert Murdoch and his son Lachlan, are expected to take part in the consortium.
Under the terms, Beijing-based ByteDance, TikTok’s parent company, would be limited to holding no more than 20 percent of the U.S. entity, in compliance with federal law. Oracle, a California-based technology company, would serve as the security provider for TikTok’s American operations. The company will be tasked with overseeing TikTok’s powerful recommendation algorithm, inspecting it regularly to ensure it is not used for “malicious purposes,” a senior official said.
Trump Administration’s Role
The Trump administration has been negotiating the deal for months, citing national security concerns over TikTok’s ties to China. Officials have warned that ByteDance’s ownership could potentially expose Americans’ data to the Chinese government.
President Trump is expected to sign an executive order later this week supporting the new arrangement. The order would delay a ban on TikTok’s U.S. operations, giving the company and investors 120 days to finalize the transaction.
The White House emphasized that if the deal closes successfully, U.S. TikTok users will not need to download a new app or make any changes to their current accounts.
National Security and Market Scrutiny
While the agreement represents a significant step toward resolving the standoff, several hurdles remain. ByteDance must formally approve the framework of the deal, and the plan will undergo regulatory scrutiny, including antitrust reviews to ensure it complies with U.S. competition laws.
National security concerns have been central to the negotiations. By moving control of TikTok’s algorithm and data handling to a U.S.-based entity, the administration aims to reduce risks of foreign interference or surveillance. Oracle’s role as security overseer is seen as a compromise that allows the app to continue thriving while addressing these issues.
What It Means for Users
For TikTok’s American audience, the agreement ensures continued access to the app, which has become a cultural phenomenon and a major platform for entertainment, political expression, and marketing. With no requirement to re-download the app, the user experience is expected to remain largely unchanged.
Still, the deal underscores the growing scrutiny of foreign-owned technology companies operating in the United States. Analysts note that TikTok’s case may set a precedent for how Washington handles similar concerns about data security and international competition in the future.
Looking Ahead
The preliminary deal reflects an effort to balance national security concerns with the app’s popularity and economic value. For now, TikTok users can expect business as usual, while investors and regulators work to finalize the details in the months ahead.
Whether this arrangement fully satisfies lawmakers and regulators remains to be seen, but the agreement highlights how the intersection of technology, politics, and international relations continues to reshape the digital landscape.
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