A landmark deal to place TikTok’s U.S. operations under the control of American investors is nearing completion, a move aimed at resolving national security concerns that have dogged the popular video-sharing app for years. The agreement, certified by President Donald Trump, follows a 2024 law that required the platform’s Chinese parent company, ByteDance Ltd., to divest its U.S. assets or face an outright ban. The new structure creates a U.S.-based joint venture, with major players including Oracle, that will hold a majority stake in the company and assume control over its coveted algorithm and content moderation.
Despite official assurances that the deal will secure American user data and prevent the platform from being used as a propaganda tool, critics argue the arrangement prioritizes the platform’s immense profitability while failing to neutralize the fundamental risk of algorithmic manipulation. The core of the issue lies in whether a change in ownership can truly sever the app from potential influence by Chinese authorities, who could still leverage the platform’s powerful recommendation engine to shape public opinion and censor content. While the deal addresses the corporate structure, it leaves unanswered questions about the technical and operational independence of an algorithm originally developed in China, raising doubts about whether the transfer of ownership will fully mitigate the national security threats that prompted the initial ban-or-divest law.
An American-Led Venture Takes Control
The agreement, valued at an estimated $14 billion, establishes a new U.S.-backed joint venture that will acquire 80% of TikTok, with ByteDance retaining a 20% stake. The White House has confirmed that U.S. companies and investors will control the app’s algorithm, which tailors content for its 170 million American users, and will hold a majority of seats on the board overseeing its stateside operations. This structure is intended to satisfy the legal requirements of the 2024 law, which was passed with bipartisan support in response to growing fears over the Chinese government’s potential access to U.S. user data and its ability to influence the information landscape.
President Trump has identified software maker Oracle and its CEO, Larry Ellison, as major players in the new venture, alongside other prominent American investors. According to officials, Oracle will provide comprehensive security for the company, including monitoring its technology and managing how American data is stored. The stated goal is to allow the platform to continue operating in the U.S. while ensuring that the data of American users is protected and insulated from foreign interference. The deal was finalized after the president repeatedly extended the deadline for the ban, signaling a preference for a sale over a shutdown that would impact a significant portion of the U.S. population.
The Algorithm at the Heart of the Matter
The central sticking point in negotiations has consistently been control over TikTok’s powerful recommendation algorithm. U.S. officials have long warned that this closely guarded technology is vulnerable to manipulation by Chinese authorities, who could subtly tweak it to push propaganda, censor specific viewpoints, or even interfere in elections. These fears were amplified in 2023 when Osama bin Laden’s “Letter to America” went viral on the platform, an event lawmakers cited as evidence of TikTok’s potential to amplify extremist or harmful content.
Under the new arrangement, the U.S.-based entity will operate and control a copy of the algorithm. Reports suggest the American group will essentially lease the algorithm and then “retrain it” using data from users in the United States. However, some experts express skepticism, arguing that a focus solely on TikTok is too narrow, as all major social media platforms present similar vulnerabilities to hostile influence. A key concern is whether the deal truly insulates the algorithm from its creators, especially since China will likely retain control over the original version and could potentially influence its U.S. counterpart through technical means or retained expertise.
Beyond Influence: The Data Espionage Threat
In addition to the threat of ideological manipulation, the TikTok debate has been fueled by fears of mass data collection. One of the two primary concerns driving the ban-or-divest effort is the possibility that TikTok functions as a spying tool for the Chinese government, feeding it sensitive personal data on millions of Americans. According to a Pew Research Center survey, among Americans who supported a ban, approximately 80% cited concerns over data security as a major factor in their decision.
The Justice Department has previously accused TikTok of collecting sensitive data that could be exploited by Beijing. These espionage concerns are not limited to high-level intelligence but extend to the personal level, with worries that the software itself could be used to track individuals or gather information on sensitive infrastructure. To address this, many countries, including the U.S., have already banned the app on government-issued devices. Proponents of the new deal argue that with Oracle overseeing security, American user data will be secure and protected from foreign adversaries, allowing users to engage with the platform with greater confidence.
A Solution That Raises New Questions
While the transfer of ownership to a U.S.-led group appears to resolve the immediate conflict, it may not eliminate all national security risks. Some analysts believe the divestment accomplishes little if China retains influence over the algorithm, rendering the deal a superficial solution that shifts profits without neutralizing the core threat. The success of the new arrangement hinges on the ability of the U.S. entity to ensure that China-based engineers cannot access or update the American version of TikTok, thereby preventing backdoors that could leave U.S. data vulnerable.
Furthermore, the deal itself introduces new potential for manipulation. With an ownership group handpicked by the U.S. government and tasked with “algorithmic oversight,” there is a risk that the platform could be influenced for domestic political purposes. This concern is heightened by the fact that TikTok is a growing source of news for Americans, with around 20% of U.S. adults now regularly getting news on the platform, up from just 3% in 2020. The debate underscores a larger challenge: how to make all media platforms less susceptible to manipulation, regardless of whether the adversary is foreign or domestic.
