Tech giant Oracle will receive a copy of TikTok's algorithm to operate for US users, as part of the deal that was agreed between Donald Trump and his Chinese counterpart Xi Jinping, last week. Determining next steps for the algorithm, currently owned by the Beijing-based ByteDance, has been one of the most closely watched issues during negotiations over TikTok's future. 'Will meet national security concerns' A senior official in President Donald Trump's administration told The Associated Press that they believe the plan will satisfy national security concerns over a Chinese company potentially manipulating what is being shown to platform users. Who will own TikTok US According to Reuters, President Donald Trump will sign an executive order later this week that declares that a deal to divest TikTok's US operations from its Chinese owner ByteDance will meet requirements set out in a 2024 law. A White House official told Reuters that the US is confident that China has approved the deal and does not plan further talks with Beijing about its details. The official added that additional paperwork is required from both sides to approve the deal. Trump's executive order will include a new 120-day enforcement pause to allow the investors and ByteDance to close the agreement, the official added. While the full details on investors who would be acquiring TikTok’s US operations have not been released, the official confirmed that Silver Lake, a private equity firm, and Oracle are part of the investment group, and ByteDance will own less than 20%. Trump said on Sunday that media mogul Lachlan Murdoch and business leaders Larry Ellison and Michael Dell would be involved as US investors. According to the official, the valuation of TikTok's US assets will be "many billions of dollars," and the government will not take a board seat or get a golden share in the new entity. The US is one of the biggest markets for TikTok, with 170 million users, but due to its Chinese ownership, the short-video app has remained under constant scrutiny. How US forced sale of TikTok In April 2024, the then-US President Joe Biden signed bipartisan legislation before leaving office, requiring ByteDance to sell its assets to an American company or face a ban. ByteDance had until January 19, the last day of Biden’s presidency, to sell its US assets, but he did not enforce the ban, leaving the decision to the next administration. Trump, who was a critic of TikTok during his first term in office, delayed enforcement of the law after his inauguration on January 20, giving ByteDance more time to find a buyer. Chinese authorities had long opposed the sale of TikTok, arguing that its recommendation engine was a strategic national technology. However, a breakthrough was reached last week, and Trump announced the deal after his conversation with Xi.
