Trump Allies to Control TikTok Under New US Deal
In a significant development, President Donald Trump signed an executive order on Thursday, September 25, 2025, outlining a proposed deal that would place a US version of TikTok under the control of his allies. The deal aims to reduce Chinese ownership while addressing national security concerns related to the popular video-sharing app.
Deal Structure and Key Players
The proposed deal would see Chinese ownership of TikTok reduced to 20 percent in the United States. A new US entity, valued at approximately $14 billion, would be formed. ByteDance, TikTok's Chinese parent company, would retain a minority stake. Control would be largely vested in American investors and a US-led board.
Key investors expected to be involved include: Larry Ellison, the founder of Oracle; tech investor Michael Dell; and media tycoon Rupert Murdoch. Investment firm Silver Lake Management and Silicon Valley powerhouse Andreessen Horowitz are also reportedly part of the deal. The Abu Dhabi royal family, through MGX, is also expected to take a significant stake.
National Security Concerns and Algorithm Control
US policymakers, including Trump, have expressed concerns about potential data mining and influence by the Chinese government through TikTok's algorithm. The new deal intends to address these concerns. The US version of TikTok will feature a homegrown model of the app's algorithm. A White House official said this algorithm would be "continuously monitored" to ensure it is "not being unduly influenced." Oracle is set to verify TikTok’s algorithm retraining and safeguard U.S. user data.
Political Neutrality and MAGA
While the investors involved are largely considered Trump allies, the president insisted that the app would not toe any political line. "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.
Chinese Approval and Future Steps
Trump stated that President Xi Jinping gave his green light to the deal during a phone call. However, China has reiterated the call for "open, fair" treatment on the issue. The executive order grants a 120-day enforcement delay to complete the transaction by January 23. The situation remains fluid, and further negotiations and approvals are required to finalize the agreement.
Reactions and Valuation
JD Vance, the US Vice President, noted that the $14 billion valuation is significantly lower than ByteDance's overall estimated value of $330 billion. Despite the lower valuation, the deal aims to keep TikTok operating in the US while ensuring data privacy and security. Reactions to the deal have been mixed, with some concerns raised regarding the potential for continued Chinese influence, even with the US majority ownership.
Controversies and Challenges
Critics in Congress are expected to focus on continued cooperation with ByteDance on the algorithm, even with US oversight. Some analysts have argued that the deal is "not a clean break" and could face legal challenges. The future of TikTok in the US remains uncertain, with potential legal battles looming.
Media Landscape Implications
The proposed deal raises concerns about media consolidation, as the Murdoch and Ellison families could potentially control a significant portion of the American media landscape. The power centralized in these families would be enormous should the TikTok deal and David Ellison’s purchase of Warner Bros Discovery go through. The deal could also impact the regulatory environment and influence high-level US government decisions.
