Trump's TikTok Takeover: Who's Buying and How Will It Work?

President Donald Trump has announced that a deal for TikTok in the United States is complete, and he says it has the approval of China's President Xi Jinping. On Thursday, Trump signed an executive order that allows TikTok to keep operating in the US, as long as its Chinese parent company, ByteDance, sells its US operations to a group of American investors. This move comes after years of concern from US officials who believe ByteDance's ties to the Chinese government could threaten national security. They worry that the Chinese government could force ByteDance to share data about American users, who number around 170 million. TikTok and ByteDance have denied these claims, but similar worries have led to bans in other countries. In April 2024, Congress passed a law giving ByteDance nine months to find a US-approved buyer or face a ban. TikTok called the law unfair and tried to fight it in court, but was unsuccessful. ByteDance said it did not plan to sell, but after Trump became president in January 2025, he extended the deadline several times to allow more time for a deal.

The new deal involves several well-known investors, including Oracle, Fox Corporation's Rupert Murdoch, and Michael Dell of Dell Technologies. Oracle will continue to store TikTok's US user data on its American servers, as it already does. The new company will be worth $14 billion, and Americans will hold six out of seven seats on the board of directors. China will own less than 20 percent of the new company. The most important part of TikTok, its algorithm, will be controlled by the American investors. This algorithm decides what videos users see and is considered very valuable. The new version of TikTok will use an algorithm trained only on US user data. Security partners will monitor software updates and data flows to make sure everything is safe. The White House also named Silver Lake, a private equity firm, as another investor. Officials say they are looking for 'patriotic' investors who care about the US. Some public figures, like OnlyFans founder Tim Stokely and YouTuber MrBeast, were mentioned as possible partners.

ByteDance and TikTok have not made any public statements about the deal yet. However, ByteDance did thank both Trump and Xi Jinping for helping to keep TikTok in the US. President Trump said that Xi Jinping agreed to the deal during a phone call. The Chinese government has been more cautious, saying it wants companies to follow market rules and reach fair solutions. Experts believe ByteDance would not sell TikTok without China's approval, and China is expected to issue a license for the TikTok algorithm soon. Trump also plans to discuss the deal with Xi Jinping at a summit in South Korea. For US TikTok users, the deal means they can keep using the app. Many creators were worried about losing their income if TikTok was banned, and TikTok even encouraged users to contact their representatives. If TikTok had been banned, apps like Instagram Reels and YouTube Shorts might have gained more users. Even though TikTok will stay, it's not clear if the new version will be as popular. Some experts say it might not be the same as before, and users will have to decide if they want to keep using it.

The deal is not final yet, as ByteDance and the Chinese government still need to agree. The US government hopes this plan will protect American users' data and keep TikTok safe. The new owners will have to follow strict rules to make sure user information is secure. Many people are watching to see what happens next, as TikTok is an important app for millions of Americans. The government wants to balance safety with allowing people to enjoy their favorite social media platform. The new deal could change how TikTok works, but for now, it means the app will remain available in the US.