The White House has clarified a key part of the TikTok deal. If the agreement goes through, TikTok’s U.S. algorithm will be managed in the U.S. by Oracle. This is a big step, confirmed by a senior White House official in a recent call with reporters.
The deal aims to transition control of TikTok’s operations in the United States to a new group made up mostly of American investors. This group will have a majority U.S. board directing the operations. Major players in this investment will include Oracle and the private equity firm Silver Lake, along with other American and international firms already involved with TikTok’s parent company, ByteDance.
After the deal, ByteDance will maintain a small stake in TikTok—less than 20%. The finalized list of investors isn’t complete just yet. President Trump mentioned tech leaders like Michael Dell and members of the Murdoch family as possible investors, although it’s confirmed that Fox Corp. will have a stake, not the Murdochs personally.
The urgency behind finalizing the deal is growing. Trump spoke with Chinese President Xi Jinping recently and feels progress has been made. However, the deal still needs formal approvals from China, although U.S. officials remain optimistic it will happen. White House Press Secretary Karoline Leavitt expressed confidence that a deal would be finalized soon, likely within days.
Trump plans to sign an executive order, stating the agreement meets all requirements under a law regarding the ban-or-sale of TikTok. This measure allows for an extension of the pause on the law’s enforcement for 120 days, giving time for the deal’s paperwork to be completed. ByteDance will also need to sign an agreement outlining the deal’s framework with new investors.
The TikTok saga began when U.S. officials grew concerned about its Chinese parent company potentially posing a national security risk. The app’s recommendation algorithm has been a point of contention. Officials worried that ByteDance could be compelled to tweak the algorithm to serve the Chinese government’s interests, impacting American users. The ban-or-sale law prohibits any collaboration on this algorithm between ByteDance and the new group.
Under the new ownership structure, TikTok’s algorithm will be copied from ByteDance, analyzed, and then retrained using U.S. user data. Oracle will serve as the watchdog, ensuring content is managed properly. However, the new group will only manage the algorithm for users in the U.S., raising questions about whether American users may need a different app post-deal.
This deal also expands Oracle’s role with TikTok. Oracle is already storing U.S. user data for TikTok to mitigate national security fears. In the midst of these developments, Oracle CEO Safra Catz announced her resignation. She will be replaced by co-CEOs Clay Magouyrk and Mike Sicilia. There’s speculation that Catz, a Trump ally, may take a prominent role in the new venture.
While the White House hasn’t finalized whether it will take a fee for facilitating the TikTok deal, estimates suggest it could be worth billions. Interestingly, the White House won’t hold a “golden share” or stake in the new company.
This story ties into a broader context. The TikTok saga highlights ongoing U.S.-China tensions regarding tech and data security, reminiscent of past tech disputes between nations. American users are becoming increasingly vocal about data privacy. Social media reactions, especially from TikTok users concerned about losing their beloved app, underscore the stakes involved.
As this situation unfolds, the implications for data management and user privacy will be keenly observed, not just in the U.S. but internationally.
