President Donald Trump will sign an executive order on Thursday declaring that a deal to sell TikTok’s U.S. operations meets requirements of a 2024 law, a White House source said.
The deal would move TikTok’s U.S. operations to a consortium of American investors, including Oracle, and ensure compliance with the law that bans the platform unless its Chinese owner, ByteDance, is removed.
Trump delays TikTok ban to finish U.S. sale
President Donald Trump delayed banning TikTok in the United States because the platform has more than 170 million users in the United States. The ban would affect millions of people, businesses, and creators who use TikTok to watch videos, share content, and connect with people worldwide.
The executive order that Trump will sign on Thursday might extend the pause for another 120 days. Doing so will allow the White House, investors, technology experts, and legal teams enough time to ensure every part of the deal works.
According to the law, the president can decide what counts as a real “divestiture.” Trump can decide if the deal really separates TikTok’s U.S. operations from ByteDance’s control. This involves checking who owns the company, how much ByteDance will keep, how the recommendation algorithm works, how user data is stored, and who controls the app’s operations in the United States.
Under the plan approved by President Trump, ByteDance might keep less than 20% of the new U.S. company. In contrast, a group of American investors, including Oracle and other major companies, will take control.
American investors take control and secure TikTok
The deal introduces major American business leaders and companies, including Oracle, Michael Dell of Dell Technologies, and members of the Murdoch family, who own media companies such as News Corp and Fox. These members will oversee the platform and make sure it operates according to U.S. rules.
Oracle will host all TikTok data from American users on its secure cloud servers and review the code and the recommendation algorithm. The algorithm will be copied and retrained to operate only on American user data.
A board of directors will oversee TikTok’s U.S. operations, set policies, and make strategic decisions, with six of the board seats reserved for American investors to guarantee that U.S. interests run the platform. This board will moderate content, update the tech, and ensure compliance with U.S. law.
The White House believes the deal meets all legal standards, complies with the 2024 law, and protects American users while keeping TikTok operational and accessible for people in the United States. The agreement also allows Americans to continue watching global content from creators worldwide.
The deal will prevent foreign influence, protect user information, and make the platform safe, reliable, and trustworthy for millions of Americans who use TikTok daily.
As stated earlier by Cryptopolitan, ByteDance will not be allowed to access TikTok’s algorithm, U.S. user data, or any future software operations inside the country. “Oracle, the U.S. security partner, will operate, retrain, and continuously monitor the U.S. algorithm to ensure content is free from improper manipulation or surveillance,” read the official Q&A released by the White House.
The deal comes amid bipartisan congressional concerns over national security. It aims to safeguard the platform from foreign influence, including from China, while keeping it safe and reliable for millions of U.S. users.
The White House did not elaborate on how much oversight federal agencies would have over Oracle’s operations or the algorithm itself. However, officials said Oracle would ensure “improper manipulation is prevented,” without providing details on how this would be implemented.
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Source: https://www.cryptopolitan.com/trump-to-sign-tiktok-u-s-deal-thursday/