President Trump Expected to Approve TikTok Divestment Deal
President Trump is expected to sign an executive order approving a deal for ByteDance to divest TikTok's U.S. operations, addressing national security concerns and following a prior law.
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Overview
- A Congressional law, previously signed by President Biden, mandated ByteDance divest TikTok's U.S. assets or face a shutdown due to national security risks, setting the stage for this deal.
- The proposed deal involves ByteDance divesting TikTok's U.S. operations into a new U.S.-based joint venture, granting American investors and board members significant control over the platform.
- Oracle will manage TikTok's U.S. algorithm and security, overseeing app updates and data storage, and receiving a copy of the algorithm to address national security concerns.
- ByteDance will retain under 20% equity in TikTok's U.S. operations and hold one of seven board seats, with the remaining shares owned by U.S. and global firms.
- President Trump is expected to sign an executive order confirming this TikTok deal meets U.S. national security needs, with President Xi of China also reportedly approving the agreement.
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Analysis
Center-leaning sources cover the TikTok deal neutrally, focusing on factual reporting of the agreement's progress and key players. They present both the U.S. national security concerns and TikTok's denials, attributing information clearly to officials. The coverage provides historical context and details of the deal without employing loaded language or selective emphasis to push a particular narrative.
"A high-powered group of majority American-based investors may be set to take ownership of TikTok's U.S. operations after a convoluted yearslong bid to keep the social media app available in the United States."
USA TODAY"The specifics of this platform remain largely unclear, including its features and how it will differ from the original app."
TechCrunch"The algorithm would be 'fully inspected and retrained,' the senior White House official said Monday."
ABC News"It's going to save thousands of jobs."
NPR"There seems to be some progress."
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FAQ
ByteDance retains a minority stake of up to 19.9% in TikTok’s U.S. operations, while majority control is transferred to American investors and board members. The U.S.-based TikTok entity will have a board dominated by American members, including one appointed directly by the U.S. government.
Oracle will manage TikTok's U.S. algorithm and security, oversee app updates and data storage, and receive a copy of the algorithm to address U.S. national security concerns. Additionally, a U.S. government-appointed board member will provide oversight on TikTok’s governance in the new structure.
A 2024 Congressional law, upheld by the Supreme Court, required ByteDance to divest TikTok’s U.S. assets or face a shutdown. President Trump extended the original deadlines multiple times via executive orders to allow for negotiations, culminating in the current divestment deal expected to be approved by Trump.
Public support for banning TikTok in the U.S. has declined, with only about 34% of Americans favoring a ban in 2025, reflecting a change amid the ongoing negotiations and ownership restructuring.
Chinese President Xi reportedly approved the TikTok divestment agreement, indicating cooperation from the Chinese side for ByteDance to divest TikTok’s U.S. operations under the new deal.
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