Trump Approves Deal Transferring TikTok US Operations to American Investors: What Users Need to Know

TikTok faced a temporary suspension in the United States earlier this year amid escalating national security concerns.

President Donald Trump signed an executive order on Thursday that approves a deal transferring TikTok's US operations to American investors. This decision follows extensive negotiations between the United States and China regarding the popular social media platform owned by ByteDance.

Trump revealed that his administration had reached an agreement with Chinese President Xi Jinping allowing TikTok to continue operating in the US. During a press conference, Trump stated, "I spoke with President Xi and he said, 'Go ahead with it.'"

He emphasized, "This is going to be American-operated all the way," according to The Guardian.

Under the new agreement, American investors will hold approximately 80 percent controlling interest, while ByteDance and Chinese investors will retain less than 20 percent ownership.

The restructured TikTok US company will operate under the oversight of a seven-member board of directors. Six of these members will be Americans with expertise in cybersecurity and national security. This board will be tasked with ensuring safe operation, user data protection, and compliance with US regulations.

US software giant Oracle leads the investor group. Trump mentioned during the press conference that alongside Oracle and its co-founder Larry Ellison, media magnate Rupert Murdoch and Dell CEO Michael Dell are among the investors, as reported by The Guardian.

"Great investors. The biggest. They don't get bigger," Trump remarked.

A significant change involves American investors controlling the algorithm for the US version of TikTok. This means all decisions regarding content promotion and user recommendations will be managed within the United States. According to the executive order, "Trusted security partners will monitor software updates, algorithms and data flows," the BBC reported.

Trump and Vice President JD Vance confirmed the deal meets the standards outlined in the 2024 law, ensuring TikTok's continued operation in the US.

In 2020, during his first presidential term, Trump had signed an executive order banning TikTok over national security concerns. That order was blocked by courts and never fully implemented. By 2024, Trump's position shifted as he publicly opposed banning the platform and even posted videos promising to "save TikTok."

When announcing the deal on Thursday, Trump acknowledged TikTok's importance to many US businesses, particularly smaller ones, in reaching customers. He mentioned that numerous business owners had contacted him over the past six months advocating against a TikTok ban.

"Small businesses have become very successful because of TikTok, and we didn't think of that," he said, according to NBC News.

When questioned about whether TikTok would promote MAGA (Make America Great Again) content, Trump expressed his personal preference for such content, even joking that if possible, he would make the app "100% MAGA-related."

TikTok came under scrutiny earlier this year due to growing US government concerns that user data could be accessed or exploited by the Chinese government, potentially compromising American citizens' personal information.

The law passed in 2024 specifically cited these national security concerns, requiring TikTok to either transfer its US operations to American ownership or face a complete ban in the country.