The White House has announced that US companies will now control TikTok's algorithm, and Americans will hold six of seven board seats for the app's US operations in a much-anticipated deal with China.
Press secretary Karoline Leavitt stated that a deal could be signed 'in the coming days,' but there has been no comment from Beijing regarding the agreement.
The US government has aimed to sever TikTok's US operations from its Chinese parent company, ByteDance, citing national security concerns.
Previously, TikTok was instructed to either sell its US operations or face a shutdown, with President Trump having previously delayed the enforcement of this ban several times since its announcement in January. The deadline has now been extended to December.
Leavitt confirmed that data and privacy for TikTok will be managed by Oracle, a leading tech giant owned by Larry Ellison, a close ally of Trump. 'The data and privacy will be led by one of America's greatest tech companies, Oracle, and the algorithm will also be controlled by America as well,' she told Fox News.
Mr. Ellison's influence appears to be increasing, especially with his son's recent acquisition of Paramount, which owns CBS News, solidifying the Ellison family's position in American media.
In a call with Chinese counterpart Xi Jinping, Trump asserted that both leaders approved the deal, though details and confirmation from Beijing remain unclear. China's state news agency only indicated that Xi welcomed negotiations regarding TikTok.
A key issue in discussions has been the ownership of the algorithm that serves TikTok's 170 million American users. Trump has shifted from initially advocating for a ban on TikTok to leveraging the platform to engage younger voters in his successful 2024 presidential campaign.
The US Supreme Court upheld a law in early 2024 banning TikTok unless ByteDance divested from its US operations, making the app's future contingent on these negotiations. The Department of Justice has reiterated concerns about the potential national security threat from TikTok's access to user data.
