Trump to Sign Executive Order Finalizing TikTok Ownership Deal

U.S. President Donald Trump is set to sign an executive order on Thursday, confirming a deal that will separate TikTok’s U.S. operations from its Chinese parent company, ByteDance. This agreement will fulfill the requirements outlined in a law passed in 2024, allowing TikTok to continue its operations in the United States. The app, which boasts approximately 170 million U.S. users, had faced possible bans from the government amid concerns over user data security.

The negotiations arise from a 2024 law enacted during the Biden administration, which mandated the transfer of TikTok’s American assets to U.S. owners. Lawmakers expressed concerns that the Chinese government could access American user data due to ByteDance’s obligations under Chinese law. TikTok has consistently stated that it has never received requests for such data and maintains that U.S. user information is stored outside of China.

In the lead-up to the executive order, Trump indicated last week that an agreement had been reached, although he provided limited details. He mentioned, “We have a group of very big companies that want to buy it.” The White House has set a deadline of December 16 for ByteDance to finalize this deal.

Details of the Ownership Structure

A representative from the Chinese government confirmed that both sides had reached a “basic framework consensus.” Trump discussed the deal with Chinese President Xi Jinping during a phone call, asserting that Xi had approved the agreement, although China has not formally confirmed this claim.

While many specifics regarding the new ownership structure remain unclear, Oracle, a Texas-based technology company, has been identified as a key player in the deal. White House Press Secretary Karoline Leavitt stated that Oracle would manage the app’s data and security, overseeing U.S. control of TikTok’s algorithm—an element of significant concern for U.S. officials. Oracle currently operates the cloud servers that house TikTok’s content recommendation engine and user data in the United States.

Private equity firm Silver Lake is also reportedly part of the consortium set to acquire TikTok’s U.S. operations. Sources indicate that ByteDance will retain a 19.9 percent ownership stake, just below the law’s 20 percent threshold. Potential U.S. bidders include tech giants like Microsoft and Amazon, as well as billionaire Frank McCourt and a consortium led by the founder of OnlyFans. Trump has also mentioned media mogul Rupert Murdoch and tech entrepreneur Michael Dell as potential figures involved in the deal.

Political Implications and Broader Context

The dynamics surrounding this deal could reflect a broader political shift in the U.S. social media landscape. Brett Caraway, a professor of media and economics at the University of Toronto, suggests that the involvement of prominent figures in the deal could signal a continuing rightward tilt in the platform’s ecosystem. He notes that tech leaders have become increasingly aligned with Trump’s administration since his return to the presidency.

As the U.S. navigates negotiations with TikTok, implications extend beyond its borders. Canada has not imposed a ban on the app, yet privacy commissioners recently uncovered that TikTok collected sensitive information from hundreds of thousands of Canadian users under 13 years old. Following these findings, the Canadian government ordered TikTok to cease its operations in Canada in November 2024, citing unspecified national security risks. Social media experts and content creators expressed concerns that the closure would adversely affect Canadian creators by limiting opportunities and resources.

Caraway emphasizes that the U.S. approach to negotiating with TikTok may offer lessons for Canada. He argues that rather than outright bans, a more constructive dialogue could yield better results for both governments and users. He stated, “Just saying that you’re just going to ban the corporate entity in Canada doesn’t seem very productive to me.”

In summary, as Trump prepares to finalize this significant deal with TikTok, the outcome could have lasting effects not only on the app’s future in the U.S. but also on international attitudes toward digital privacy and data governance.