 "China and US flags are seen near a TikTok logo in this illustration picture taken July 16, 2020. File Image/Reuters")
The fate of TikTok in the United States appears to finally be moving towards a climax, one that involves some of the most influential figures in corporate America.
US President Donald Trump announced that a group of high-profile US investors — including Fox Corporation CEO Lachlan Murdoch, Oracle co-founder Larry Ellison, and Dell Technologies CEO Michael Dell — are lined up to take stakes in a proposed deal that would keep the popular short-video platform running in the country.
TikTok, which has over 170 million active users in the US, has been at the centre of intense scrutiny in Washington over concerns that its Chinese parent company, ByteDance, could be compelled to share sensitive user data with Beijing.
Under a 2024 law passed during the Biden administration, ByteDance was required to sell TikTok’s US assets by January 2025, or the app would face a nationwide shutdown.
However, Trump has delayed enforcement of the law several times as negotiations have continued.
The latest pause extends until mid-December 2025, with the White House now indicating another 120-day extension, potentially pushing the final deadline into April 2026.
What we know about TikTok US’ new ownership structure
According to a senior White House official, the proposed agreement would create a new US-based company to manage TikTok’s American operations.
Under this structure, American investors would hold a majority stake, while ByteDance would retain less than 20 per cent ownership. The new entity would be governed by a seven-member board, with six members appointed by the US side and one selected by ByteDance.
The board would be composed of individuals with strong credentials in national security and cybersecurity, ensuring that the app is insulated from any foreign influence.
This move directly addresses longstanding US concerns about how TikTok’s data is stored and used.
As part of the deal, all American user data would be stored exclusively on US-based cloud infrastructure operated by Oracle, one of the companies poised to invest in the venture. Oracle’s involvement is seen as critical because of its role in providing secure data storage and oversight.
The White House official highlighted that the TikTok recommendation algorithm — the engine behind the app’s popular “For You” feed — would also be brought under strict US control.
“TikTok’s content-recommendation algorithm will be retrained from the ground up - reviewed and analysed under US supervision with U.S. data that will not be shared outside of the United States,” Reuters quoted the official.
While the algorithm itself may be licensed from ByteDance, US authorities would have oversight to ensure it cannot be used by foreign actors to manipulate what American users see on the platform.
Who’s involved: Murdochs, Ellison, and Dell
Trump confirmed that Lachlan Murdoch, Larry Ellison, and Michael Dell would be part of the American investment group taking control of TikTok’s US operations.
Lachlan Murdoch, who recently secured long-term control over his family’s media empire, will participate through Fox Corporation, according to sources familiar with the matter.
The investment will not come from Murdoch personally, nor from News Corp, which owns media outlets such as The Wall Street Journal and The New York Post.
Rupert Murdoch, the 94-year-old patriarch of the Murdoch family, could also have a role in the deal, though details remain unclear.
Trump praised the group of investors during an interview with Fox News’ The Sunday Briefing, calling them “American patriots” and expressing confidence in their ability to oversee TikTok’s US operations.
“I think they’re going to do a really good job,” Trump said, highlighting the platform’s role in helping him connect with younger voters during the 2024 presidential election, where he has credited TikTok as a key tool for his campaign outreach.
Larry Ellison has long been associated with TikTok’s potential transition due to Oracle’s earlier negotiations with ByteDance during the Trump administration’s first term.
As a major Republican donor and influential tech executive, Ellison’s participation provides both political and technical support to the proposed structure.
Michael Dell’s involvement adds further weight, though Dell has not yet made public comments about his role. His company, Dell Technologies, is a major player in the US technology infrastructure sector.
How the US is planning to “protect” TikTok from Beijing
The restructuring plan includes several layers of protection designed to ensure that TikTok cannot be used as a tool for foreign espionage or influence campaigns.
These measures respond to persistent allegations that ByteDance, as a Chinese company, could be compelled by Beijing to hand over sensitive data about US users or to alter TikTok’s content in ways that favour Chinese interests.
The most significant safeguard is the complete localisation of American user data, which would now be stored on secure cloud servers operated by Oracle.
Additionally, the decision to retrain and operate the algorithm domestically ensures that the mechanisms determining what videos go viral remain fully under US jurisdiction.
This has been a key sticking point for lawmakers, some of whom have warned that control of the algorithm could be used to subtly shape public opinion in the United States.
ByteDance’s current investors — including Susquehanna International Group, General Atlantic, and KKR — will remain minority stakeholders in the new company but with sharply limited influence.
The White House confirmed that ByteDance’s total ownership would be capped at under 20 per cent.
Trump hinted at additional measures, including the possibility of the U.S. government taking a fee for brokering the deal, though this component “hasn’t been fully negotiated.”
The Wall Street Journal has reported that such a fee could be worth several billion dollars.
How politicians reacted to the move
While the proposed deal represents a breakthrough in US-China negotiations, it faces scepticism in Congress. Some lawmakers are concerned that the arrangement might not meet the legal requirement for a full divestiture, as mandated by the 2024 law.
Democratic Representative Frank Pallone voiced opposition, warning against the risk of lingering Chinese influence over TikTok. “The devil will be in the details,” Pallone said.
“We cannot allow China continued access to massive amounts of Americans’ personal data, and we cannot allow Trump to hand TikTok over to his tech bro buddies and turn it into a Maga mouthpiece. Period.”
Congress is expected to closely scrutinise the final structure of the deal, particularly the question of whether ByteDance’s minority stake gives it any meaningful control over TikTok’s inner workings.
Trump himself has amassed 15 million followers on his personal TikTok account and has credited the app with helping him secure re-election in 2024.
The White House even launched its official TikTok account last month, signalling the administration’s recognition of the platform’s reach.
How US-China negotiations are faring
Trump and Chinese President Xi Jinping recently held a two-hour phone call, their first direct conversation in three months.
During the call, the two leaders discussed a range of topics, including TikTok, the Russia-Ukraine war, and efforts to curb the flow of illicit drugs like fentanyl.
Trump later told reporters that Xi had approved the TikTok deal, though he noted that a formal signing ceremony might still be necessary.
“The TikTok deal is well on its way,” Trump said from the Oval Office.
The two leaders agreed to meet face-to-face in South Korea at the Asia-Pacific Economic Cooperation (APEC) forum, which begins on October 31, 2025, in Gyeongju.
Trump also announced plans to visit China early next year, with Xi expected to make a reciprocal visit to the US at a later date.
However, Beijing’s official statement was more cautious. It pointed out China’s desire for “non-discriminatory treatment” of its companies but stopped short of explicitly confirming that a final agreement had been reached.
ByteDance, meanwhile, issued its own statement thanking both leaders for their attention to the matter and pledging to continue serving US users while complying with Chinese legal requirements.
Recently, a bipartisan delegation of US lawmakers visited Beijing for the first time since 2019. The Covid-19 pandemic and subsequent diplomatic rifts had effectively frozen such exchanges for years.
The delegation, led by Democratic Representative Adam Smith, met with Chinese Premier Li Qiang to discuss a range of issues, including trade tensions, technology disputes, and military matters.
Li described the visit as an opportunity to “break the ice” after years of strained ties.
Smith acknowledged the need for more frequent and open dialogue. “We need more of those types of exchanges, and we are hoping, to your words, that this will break the ice and we will begin to have more of these types of exchanges,” he told Li.
This visit comes at a time when the two countries remain at odds over semiconductor export restrictions, and Chinese activities in the South China Sea and Taiwan.
What next?
The Trump administration’s approach to TikTok is part of a broader pattern of direct intervention in private-sector matters.
Recently, the US government took a 10 per cent stake in Intel Corporation and approved a deal allowing Nvidia to sell certain AI chips to China in exchange for receiving 15 per cent of the revenue from those sales.
Trump has defended these actions as necessary to safeguard American interests and strengthen national security.
Critics, however, argue that such moves mark a sharp departure from traditional US free-market policies and could undermine the country’s economic competitiveness in the long term.
With inputs from agencies