The White House on Saturday revealed details of a long-awaited TikTok deal that would place the popular short-video app under overwhelming U.S. control, reshaping its governance and potentially setting a precedent for how Washington approaches foreign-owned platforms in the name of national security.
Press secretary Karoline Leavitt said on Fox News that six of seven seats on a new board overseeing TikTok’s U.S. operations would be filled by Americans, while the app’s prized algorithm — the recommendation engine that drives engagement — would also fall under U.S. control.
“This deal means that TikTok will be majority-owned by Americans in the United States,” Leavitt said, calling the arrangement a safeguard against Beijing’s influence. “The algorithm will also be controlled by America as well.”
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The announcement followed months of fraught negotiations that have pitted President Donald Trump’s administration and Congress against Beijing and TikTok’s parent company, ByteDance. Lawmakers had already passed a bipartisan law in 2024 banning the app, a decision upheld by the Supreme Court in January. Trump repeatedly extended enforcement deadlines, most recently to December 16, as his team sought a framework that would allow TikTok to continue operating while addressing security fears.
The control of TikTok’s algorithm has been one of the most contentious sticking points. U.S. officials feared that Beijing could weaponize TikTok to push anti-American narratives, while China has signaled reluctance to hand over the technology. Friday’s call between Trump and Chinese leader Xi Jinping appeared to mark a breakthrough, with Trump praising Xi for “approving the TikTok deal.” Yet Beijing’s official readout conspicuously avoided confirming any agreement, underscoring lingering tensions.
Oracle’s central role
Under the plan, tech giant Oracle, led by billionaire Trump ally Larry Ellison, will oversee data security. Bloomberg reported that Oracle, venture capital firm Andreessen Horowitz, and private equity firm Silver Lake Management are expected to become major investors. ByteDance would retain less than 20% ownership in the new entity, ensuring American dominance.
The White House maintains that Ellison’s company will ensure user safety and data protection.
A multibillion-dollar “fee-plus”
In a striking twist, the administration expects to collect a multibillion-dollar payment from investors — a fee Trump has framed as compensation for brokering the deal. The Wall Street Journal, citing sources, said the fee could reach billions, though final terms remain unsettled.
“This hasn’t been fully negotiated, but we’ll get something,” Trump said, calling it a “tremendous fee-plus.” He argued the unprecedented arrangement was justified by the geopolitical complexity and the U.S. government’s role in navigating the talks.
Traditionally, governments do not charge companies for national-security approvals or export licenses. Legal experts warn that demanding fees from corporate deals could test U.S. law. For comparison, investment bankers typically receive less than 1% of a transaction’s value in fees — far below the billions being discussed here.
A geopolitical deal unlike any other
The TikTok negotiations highlight how Washington is increasingly inserting itself into corporate transactions with geopolitical stakes. Earlier this year, the Trump administration struck a deal to take an equity stake in Intel and secured 15% of sales from an Nvidia AI chip bound for China in exchange for export clearance.
The TikTok case, however, goes further: it combines national-security concerns, control of a global cultural platform, and direct financial compensation for the U.S. government. Analysts say the arrangement could embolden Washington to pursue similar strategies in future disputes involving foreign-owned firms.
The deal also caps a dramatic reversal for Trump, who in his first term pursued a full ban of TikTok. During his 2024 campaign, he pivoted, embracing the app’s popularity among younger voters and pledging to preserve it under U.S. control. On Thursday, he credited TikTok with helping him win reelection, arguing the platform should remain available to its 170 million American users.
The announcement marks the clearest sign yet that Trump has settled on a strategy of partial divestment and heavy U.S. oversight, rather than an outright ban.
Globally, few countries have taken such a hands-on approach. India banned TikTok outright in 2020, citing national security, while the European Union has opted for regulatory scrutiny under its Digital Services Act. By contrast, Washington’s arrangement blends forced ownership changes, algorithm transfer, and direct government profit — a hybrid model that some observers say could reshape global tech governance.
Still, for TikTok’s millions of American users and creators, the deal offers temporary relief after years of uncertainty. ByteDance praised both Trump and Xi for “their efforts to preserve TikTok in the United States,” saying it would work within the law to ensure continuity. If finalized, the agreement is expected to cement TikTok’s future in America.