TikTok, the popular short-video app, has been under intense scrutiny in the U.S. over concerns that its Chinese parent company, ByteDance, could pose a national security risk. Now, former President Donald Trump has signed an executive order approving a deal that changes how TikTok is run in the United States, aiming to keep American user data safe.
The deal values TikTok’s U.S. operations at around $14 billion. Under the new arrangement, U.S.-based companies—including Oracle, Silver Lake, and Abu Dhabi-backed MGX—will own 45% of TikTok’s U.S. business. ByteDance investors will retain a smaller 35% stake. A new board of directors will oversee the app’s American operations to make sure it follows rules protecting user data and national security.
One of the biggest changes involves TikTok’s algorithm and content moderation. The agreement gives U.S. companies control over the recommendation system, source code, and moderation policies inside the United States. This means decisions about what videos are shown to U.S. users and how the platform operates will now be under American supervision.
Trump also revealed that he spoke with Chinese President Xi Jinping about the deal, and the Chinese leader did not object. Trump noted that his own popularity on TikTok influenced his approach, saying he wanted the platform to treat all viewpoints fairly while ensuring national security.
This move comes after months of uncertainty and political tension around TikTok in the U.S. Lawmakers and officials have repeatedly raised concerns that TikTok could be sharing sensitive data with China. By giving U.S.-based companies significant control and oversight, the deal is meant to ease these fears while keeping the app available to millions of Americans who use it every day.
While the deal doesn’t fully remove Chinese ownership, it significantly restructures TikTok’s U.S. operations, giving American investors and regulators more say over how the app functions in the country. For TikTok users, the goal is simple: continue enjoying the app safely, without risking personal data being compromised.
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