Trump set to approve TikTok deal ensuring majority-American investor control, White House says
White House says the plan would place TikTok's U.S. operations under a majority-American joint venture, with ByteDance holding less than 20% and Oracle serving as security provider.
WASHINGTON — President Donald Trump is expected to sign an executive order later this week to approve a proposed TikTok deal that would place the U.S. operations under a new, majority-American-owned joint venture and require user data to be stored in a U.S. cloud.
Under the plan, ByteDance would hold less than 20% of the new venture. The seven-member board would be composed primarily of U.S. citizens based in the United States, with one ByteDance-appointed member who would be ineligible to serve on the data security committee or as chair.
Oracle would serve as TikTok's trusted security provider in partnership with the U.S. government, overseeing data security across all U.S. operations. Oracle would perform independent monitoring, review of source code, and management of data flows in a secure, U.S.-based cloud environment that would store Americans’ data with restricted access. Officials said data would be stored in the United States and would not be accessible to China.
The TikTok algorithm used in the United States would be secured, retrained, and operated in the United States outside ByteDance’s control. ByteDance would first create a duplicate copy of the algorithm and lease it to the joint venture, with Oracle operating, retraining, and continuously monitoring the U.S. algorithm to prevent manipulation or surveillance. The plan preserves interoperability so U.S. users can view content from around the world while keeping data safe in the United States.
The administration estimates the deal would generate about $178 billion in economic activity in the United States over the next four years and sustain thousands of U.S. jobs and businesses. Officials emphasized that the deal would not interrupt user experience for TikTok users and that harmful content would be governed by the joint venture’s own terms of service within each jurisdiction.
Timing remains uncertain, but Trump is expected to sign the executive order to finalize the deal later this week. The order would delay enforcement of the Protecting Americans from Foreign Adversary Controlled Applications Act for up to 120 days.
The move comes after Congress enacted a law last year banning TikTok and other apps controlled by foreign adversaries, a ban challenged in court but ultimately allowed to take effect on Jan. 19, 2025, with a 90-day extension. The administration has pursued a middle path that maintains a global platform for U.S. users while isolating data and control from foreign influence.
The White House says the plan would allow all Americans to safely enjoy the same global TikTok experience and view content from around the world with the confidence that their data is secure in the United States. The arrangement would also position the U.S. as a testing ground for a new model of tech sovereignty in digital platforms.
