Trump
US President Donald Trump has signed an executive order outlining a proposed deal to create a US version of TikTok, cutting Chinese parent company ByteDance’s stake to just 20% and handing control to a group of his allies and major American investors. The move, announced during a White House signing ceremony on Thursday, 25 September 2025, aims to keep the popular app running for its 170 million US users while addressing national security worries. Trump hailed the agreement as a win for Americans, ensuring the app stays available but under tight US oversight, including a homegrown version of its famous algorithm.
This development comes after months of back-and-forth over TikTok’s future in the US, sparked by a law passed under former President Joe Biden that forced ByteDance to sell or face a ban. Trump, who delayed enforcement multiple times, extended the deadline again to 23 January 2026, giving time to finalise the transaction. Vice President JD Vance, who led the negotiations, pegged the US entity’s value at about $14 billion, though the final price will be up to the investors. For South Africans using TikTok for entertainment or business, this could mean changes in how the app works globally, but the focus remains on US operations.
The deal has stirred mixed reactions, with some seeing it as a smart compromise and others questioning the involvement of Trump’s close allies. As tech giants face growing scrutiny worldwide, this highlights the tensions between innovation, security, and politics.
Key Players in the Deal: Trump’s Allies Take the Reins
Trump spotlighted a lineup of high-profile investors to run the new US TikTok, calling them “highly sophisticated” business minds. Leading the pack is Larry Ellison, founder of tech powerhouse Oracle, known for its cloud services. Joining him are computer mogul Michael Dell, media baron Rupert Murdoch, investment firm Silver Lake Management, and Silicon Valley’s Andreessen Horowitz. These names are all linked to Trump, either through past support or shared views, but the president insisted the app would stay neutral.
“If I could make it 100 percent MAGA I would, but it’s not going to work out that way unfortunately. No… every group, every philosophy, every policy, will be treated very fairly,” Trump told reporters at the event.
Oracle is set to play a big role, hosting the app’s data on its secure US-based servers to keep user info safe from foreign eyes. Andreessen Horowitz, a top venture capital firm, brings tech know-how, while Murdoch’s media empire could shape content strategies. Silver Lake adds financial muscle, and Dell’s hardware expertise might help with infrastructure. Together, they aim to buy out most of ByteDance’s stake, leaving the Chinese firm with a minority 20%.
Vance, a former venture capitalist, described the setup as a “qualified divestiture” that protects national security while keeping the app alive for millions. The $14 billion valuation is a steal compared to TikTok’s global worth of over $100 billion, but it focuses only on US operations, including its 170 million users and ad revenue.
Safeguarding the Algorithm: TikTok’s ‘Secret Sauce’ Under US Watch
A standout feature of the deal is the handling of TikTok’s algorithm—the clever code that picks videos to keep users hooked, often called its “secret sauce.” Trump confirmed the US version would use a homegrown model of this tech, licensed from ByteDance but rebuilt and monitored in America to avoid any Chinese influence.
A White House official said the algorithm would be “continuously monitored” for fairness and security, ensuring no hidden biases or data leaks. This addresses long-standing fears that Beijing could use the app to spy on Americans or push propaganda through tailored content. US lawmakers from both parties have warned about this since Trump’s first term, leading to the Biden-era law forcing a sale.
The new entity will store all US user data on Oracle’s cloud, with strict rules to block access from China. This setup aims to protect privacy while keeping the app’s addictive appeal intact. Globally, TikTok has over 1.5 billion users, but the US market is its biggest for ads, worth billions yearly.
The Road to the Deal: Delays, Deadlines, and a Call with Xi
This executive order responds to a 2024 law under Biden that gave ByteDance a deadline to sell TikTok’s US arm or face a ban over security risks. Trump, back in office, has delayed enforcement four times, most recently pushing it from September to 16 December 2025, and now to 23 January 2026. This 120-day extension gives the investors time to seal the deal.
Trump revealed that Chinese President Xi Jinping gave the green light during a phone call last week, smoothing the path despite tensions. “(I have) great respect for President Xi, and I very much appreciate that he approved the deal, because to get it done properly, we really needed the support of China,” Trump said.
Beijing has been quiet, but state media CCTV noted Xi’s support for “market-based negotiations” under Chinese laws. TikTok did not comment, but ByteDance has fought bans in court, arguing no evidence of spying exists.
Broader Implications: Security, Politics, and the Future of Tech
The deal is a compromise in the US-China tech war, where apps like TikTok are caught in the crossfire. Policymakers fear data mining or influence, but users love the platform for its fun videos and trends. With 170 million Americans hooked—many young voters—this avoids a ban that could spark backlash.
Critics question the investor lineup’s ties to Trump, wondering if it politicises the app. But Trump promised fairness: “Every group, every philosophy, every policy, will be treated very fairly.”
For global users, including millions in South Africa, changes might be minimal, but US oversight could influence content worldwide. The app’s growth—from zero to billions in users—relies on its algorithm, so keeping it strong is key.
Vance called it a “great American success story,” blending security with business. As details firm up, watch for how this reshapes social media and US-China relations.
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