Negotiators in Washington and Beijing appear to be closing in on a deal that would give the United States control over TikTok’s U.S. platform, its user data, and its algorithm — a sweeping plan aimed at addressing long-standing national security and political concerns.
Under the emerging framework, U.S. investors — led by companies such as Oracle, Silver Lake, and Andreessen Horowitz — would hold roughly 80 percent of the ownership of TikTok’s U.S. operation, leaving the Chinese parent company, ByteDance, with a much smaller minority stake. The governance structure would be reshaped so that Americans would occupy six of the seven seats on the board overseeing U.S. operations, giving the U.S. side a strong voice in decision-making. One board seat would remain appointed by ByteDance.
A central issue in the talks has been control of TikTok’s recommendation algorithm and how content is curated and pushed to users. The proposed deal would license the algorithm to the U.S. entity, with Americans controlling its operation for the U.S. platform, separate from ByteDance’s international operations. Data security is also a major pillar: U.S. user data would be stored domestically, handled by Oracle, under stricter oversight.
These negotiations stem from a law passed by Congress in 2024 that threatened a ban on TikTok unless ByteDance divested control over its U.S. assets. The enforcement deadline has been extended multiple times, as Washington and Beijing navigate the technical, legal, and political complexities of transforming TikTok into a U.S.-controlled service without severing the app’s functionality for its 170 million Americans or crippling its business model.
As of now, U.S. officials say the framework is agreed and the deal is ready for signatures, although Chinese authorities have been more circumspect. A face-to-face meeting between President Trump and President Xi Jinping is expected soon, and is likely to be pivotal in whether and how the deal is finalized.
