TikTok’s Fate Sealed: Trump Signs Order to Shift Control to U.S. Investors While China Keeps the Algorithm

After years of controversy and protracted negotiations, the future of TikTok’s U.S. operations has finally been settled. On September 25, local time, President Donald Trump signed a new executive order confirming that TikTok’s American business will be led by U.S. investors, with parent company ByteDance retaining only a minority stake along with its most critical asset—the recommendation algorithm.

According to CNBC, the newly established TikTok U.S. entity will be jointly owned by American investors including Oracle, Silver Lake, and the AI and advanced technology investment firm MGX, who together will hold a 45% stake. ByteDance, meanwhile, is capped at a maximum shareholding of 19.9%, with the remainder distributed among existing investors.

Under U.S. regulatory requirements, ByteDance’s stake must fall below the threshold of effective control. As for American user data, Oracle will continue to oversee cloud hosting, addressing long-standing U.S. concerns over security and privacy.

Once the transaction is complete, ByteDance’s short-video business will formally split into three distinct versions: Douyin for the Chinese market, TikTok for the U.S., and a separate TikTok for international markets. This restructuring not only draws clear geographic and regulatory boundaries but also allows the U.S. to claim “full control of algorithmic operations,” thereby easing anxieties over Chinese influence.

Vice President J.D. Vance further revealed that the new company is valued at approximately $14 billion, with American leadership directing the algorithmic content recommendation process to ensure the platform “aligns with American values.” When pressed on concerns of potential political bias, Trump remarked that while he would prefer TikTok to lean entirely toward “MAGA” (Make America Great Again), he emphasized that the new entity “will treat everyone fairly.”

Nonetheless, these remarks have raised apprehensions among observers about whether the platform may be used to influence the public discourse environment.

It is noteworthy that Trump, upon signing the executive order, stressed that Beijing had “fully supported” the deal, underscoring that both sides had reached a compromise through extended negotiations. While ByteDance has managed to retain its core algorithm, the U.S., by limiting equity and securing control over data, has effectively claimed dominance over TikTok’s American market operations.

This decision not only reshapes TikTok’s U.S. corporate structure but also marks a pivotal turning point in the broader U.S.–China technological rivalry. For Washington, it represents a significant victory in the governance of digital platforms; for ByteDance, it ensures the preservation of algorithmic technology, yet concedes to the reality of a fragmented global business.

With the new U.S. TikTok entity now set to operate independently, the trajectory of its market strategies and algorithmic applications will inevitably continue to shape the global landscape of social media.

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