President Donald Trump on Thursday signed an executive order supporting a proposed deal that would place TikTok under majority U.S. ownership, a move he said addresses national security concerns while allowing the app to keep operating in the United States.

The order gives American investors — including Oracle, Silver Lake Partners and others — a controlling stake of around 80% in a new U.S.-based venture, with ByteDance holding less than 20%. The arrangement still requires Beijing’s approval and final negotiations. The order also grants a 120-day reprieve for TikTok to continue operating.

At a White House signing ceremony, Trump said Chinese President Xi Jinping had agreed to move forward with the deal. Vice President JD Vance added that the agreement ensures “Americans’ data privacy is protected” and that U.S. investors will control TikTok’s powerful recommendation algorithm.

TikTok’s new board will be controlled by U.S. investors, though ByteDance will hold one seat, excluded from security matters. Notable investors include Oracle co-founder Larry Ellison, Rupert Murdoch and Michael Dell, raising questions over potential political influence.

TikTok’s algorithm to be licensed to US Joint venture led by Oracle and Silver Lake

Trump’s order specifies that a licensed copy of ByteDance’s algorithm will be “retrained” exclusively with U.S. data to prevent Chinese interference. Analysts caution that even subtle changes could affect how TikTok operates and how its users — especially young people — engage with content.

The app’s fate has been closely watched, with about 43% of U.S. adults under 30 relying on TikTok for news, according to a new Pew Research Center report.

Beijing had initially denounced U.S. demands for TikTok’s divestment as “robbery,” but analysts say Chinese officials are now willing to compromise amid broader trade talks.

Source: Agency