U.S. President Donald Trump is set to sign an executive order on Thursday to finalize a deal that will separate TikTok’s U.S. operations from its Chinese parent company ByteDance, ensuring compliance with a 2024 law, as per a White House insider. The agreement, which has been highly anticipated, will enable TikTok to continue its operations in the U.S., resolving months of uncertainty and the looming threat of a permanent ban on the popular social media platform, which boasts 170 million American users.
The negotiation of this deal stems from a law passed by the U.S. Congress in 2024, under the Biden administration, mandating that American assets of TikTok be acquired by U.S. entities due to concerns that the Chinese government could access U.S. user data through ByteDance. Although Chinese law requires ByteDance to provide American data upon request, TikTok claims it has never received such a demand and asserts that its U.S. data is stored outside China.
The Trump administration, instead of enforcing the law, extended the deadline for reaching a deal multiple times. President Trump has attributed part of his 2024 election success to TikTok and even launched an official White House account on the platform recently. The recent announcement of a potential deal came after discussions between Trump and Chinese President Xi Jinping, with Trump indicating that a consortium of major companies is interested in acquiring TikTok. China has acknowledged a “basic framework consensus” has been reached but has not confirmed Xi’s approval of the deal.
Regarding the investors involved in the deal, specifics about the new ownership structure remain unclear. However, White House press secretary Karoline Leavitt mentioned that Oracle, based in Texas, will oversee the app’s data and security, as well as lead U.S. oversight of its algorithm, a focal point of controversy amid concerns that it could be manipulated by Chinese authorities. Private equity firm Silver Lake is also expected to be part of the group of investors taking control of TikTok’s U.S. operations. Reports suggest that ByteDance will retain a 19.9% ownership stake, just below the legal threshold of 20%.
Notable figures such as Microsoft, Amazon, billionaire Frank McCourt, and a consortium led by the founder of OnlyFans have been linked to the bidding process for TikTok’s U.S. operations. Media magnate Rupert Murdoch and tech entrepreneur Michael Dell have been mentioned by Trump as potential participants in the deal. The involvement of these prominent individuals could potentially lead to a rightward shift in the U.S. social platform landscape, according to media and economics expert Brett Caraway.
The impact of this deal on Canada is being closely watched, with Caraway highlighting that Canada’s experience with TikTok could offer valuable insights. Despite not imposing a ban on the app, Canadian privacy commissioners found that TikTok collected sensitive information about underage Canadian users. In 2024, the Canadian government ordered TikTok to cease operations in the country due to unspecified national security risks, a move that drew criticism from social media experts and content creators who warned of negative consequences for Canadian talent and cultural initiatives.
In response to the potential TikTok deal in the U.S., Caraway suggested that Canada reconsider its approach towards the platform and seek a more collaborative arrangement akin to the U.S. strategy. The U.S. negotiation with TikTok could serve as a model for Canada to enhance its engagement with the platform and mitigate any negative repercussions on its creative industry.