In a major announcement shaking the tech and political world, former U.S. President Donald Trump confirmed on September 16, 2025, that a deal to transfer TikTok’s U.S. operations from Chinese ownership to American hands is officially completed. Trump revealed that a new U.S. owner will be announced soon, following months of intense negotiations between ByteDance, TikTok’s Chinese parent company, and a U.S.-based consortium.
This landmark development resolves one of the most controversial digital sovereignty debates in recent years, addressing national security concerns while preserving the wildly popular social media app’s presence in the United States.
The Framework of the TikTok Ownership Deal
Donald Trump detailed that the agreement establishes a framework where a consortium led by Oracle Corporation, Silver Lake Partners, and Andreessen Horowitz will take over 80% ownership of TikTok’s U.S. operations. ByteDance, which has faced severe scrutiny for data security and alleged ties to the Chinese government, will retain a minority 19.9% stake in the platform.
“This deal is designed to ensure that TikTok operates under full American governance and data privacy laws,” Trump said in a press conference. He added that “Oracle will manage all U.S. user data securely in Texas, guaranteeing American users’ privacy is fully protected.”
This corporate restructuring brings a significant shift in how TikTok operates in the U.S., marking a new chapter in digital geopolitics. The consortium’s involvement is expected to balance economic interests with national security priorities, while keeping the platform’s vast user base active and engaged.
American Governance and Data Security in Focus
Under the agreement, the newly structured TikTok will have an American-dominated board of directors, including a member appointed by the U.S. government. This measure ensures governmental oversight and aligns the platform’s decision-making process with American regulatory standards.
Importantly, the deal includes a licensing agreement where the U.S. spin-off will continue to use ByteDance’s algorithm, widely regarded as one of the most sophisticated content recommendation engines in the world. “This provision allows TikTok to maintain its highly engaging user experience while giving the American board full control over algorithm management and transparency,” Trump explained.
Why This Deal Matters
The TikTok controversy has been a political hotbed since the Trump administration first voiced national security concerns, fearing that American user data could be accessed by the Chinese government. The U.S. government had initially ordered ByteDance to divest its American operations by mid-2025. The deadline was later extended to December 16, 2025, to allow time for this deal to be finalized.
This agreement is significant not only for TikTok’s nearly 150 million U.S. users but also for the broader digital economy. Experts view it as a potential precedent for how the U.S. might handle other Chinese-owned tech companies operating on American soil.
Julia Parker, a technology analyst at the Center for Digital Security, said: “This deal signals a shift in how global tech giants must adapt when operating in politically sensitive markets. The U.S. government is setting a strong example of enforcing data sovereignty while allowing business continuity.”
Reactions From Both Sides
On Wall Street, TikTok’s parent company ByteDance’s stock saw a mild uptick following Trump’s announcement, signaling investor confidence in a resolution that allows the platform to continue operating without facing an outright ban.
Meanwhile, Chinese officials described the deal as a “win-win” situation in official statements, emphasizing that intellectual property rights and technological transfers were handled fairly.
President Xi Jinping and President Trump are expected to hold high-level talks in the coming weeks to finalize the deal, addressing outstanding regulatory and political concerns from both sides.
What’s Next?
While the deal is announced as complete in principle, Trump clarified that the final ownership and governance details will be announced in the upcoming weeks. The U.S. administration will continue rigorous oversight to ensure that the consortium complies with American security standards.
Oracle is already preparing to build a state-of-the-art data management infrastructure in Texas, designed specifically to manage all U.S. TikTok user data securely. The consortium’s agreement includes binding commitments that no data will be shared with foreign governments without express authorization.
“This is about safeguarding American democracy from digital interference,” Trump emphasized. “We are ensuring that our citizens can continue enjoying the platform without fearing misuse of their personal data.”
Conclusion
The confirmation of the TikTok deal marks a historic moment in U.S.-China digital relations. It balances the demands of national security with the public’s right to digital expression and entertainment. The anticipated announcement of the new U.S. owner will likely follow in the coming weeks, setting a new standard for how tech ownership and governance are managed globally.
