
- US President Trump signed an order approving TikTok US operations transfer to American investors
- American investors will hold about 80 percent ownership of TikTok US operations
- The new TikTok US board will have six Americans out of seven members, focusing on security
US President Donald Trump signed an executive order on Thursday approving a deal to transfer ownership of TikTok's US operations to American investors. The move comes after months of negotiations between the US and China over the popular social media platform owned by ByteDance.
Trump said that his administration had reached a deal with Chinese President Xi Jinping to permit TikTok to carry on with its business in the US. Speaking at a press conference, Trump said, "I spoke with President Xi and he said, 'Go ahead with it.'"
He further said, "This is going to be American-operated all the way," reported The Guardian.
Who Will Control TikTok's US Operations?
Under the new plan, American investors will take the majority of the control, about 80 percent, while ByteDance and Chinese investors will own less than 20 percent.
The new TikTok US company will be overseen by a seven-member board of directors. Six out of seven members will be Americans, with expertise in cybersecurity and national security. This board will be responsible for ensuring the app operates safely, protects user data, and complies with US laws.
These investors are led by US software giant Oracle. In addition to Oracle and its co-founder, Larry Ellison, Trump stated during the press conference that media tycoon Rupert Murdoch and Dell computer CEO Michael Dell are among the other investors, according to The Guardian.
"Great investors. The biggest. They don't get bigger," said Trump.
What Changes Have Been Made In US TikTok?
US investors will control the algorithm for the American version of TikTok. This means that all decisions about what content is promoted or shown to users in the US will be managed domestically. According to the executive order, "Trusted security partners will monitor software updates, algorithms and data flows," reported the BBC.
Trump and his deputy, JD Vance, said the deal fit the standards for the sale of TikTok outlined in the 2024 law, ensuring the social media app's continued operation in the US.
Why Trump Reverted The TikTok Ban?
In 2020, during his first term as President, Trump signed an executive order to ban TikTok in the US, citing national security concerns. This order was halted by the courts and never fully enforced. In 2024, Trump publicly opposed banning TikTok and even posted videos promising to "save TikTok."
Announcing the deal on Thursday, Trump acknowledged that TikTok was crucial for many US businesses, particularly smaller ones, helping them reach customers. He mentioned that many business owners had contacted him over the past six months to not ban TikTok in the country.
"Small businesses have become very successful because of TikTok, and we didn't think of that," he said, according to NBC News.
When asked whether TikTok would promote content related to MAGA (Make America Great Again), Trump said he personally favoured MAGA content. He even joked that if possible, he would make the app "100% MAGA-related."
Why Was TikTok Under Scanner?
TikTok was briefly suspended earlier this year due to growing US government concerns over national security. The government feared that user data from the app could be accessed or exploited by the Chinese government, and this could put the personal information of American citizens at risk.
The law, originally passed in 2024, specifically cited these national security concerns. It mandated that TikTok either give ownership to Americans for its US operations to American owners or face a complete ban in the country.
Track Latest News Live on NDTV.com and get news updates from India and around the world