U.S. President Donald Trump is set to sign an executive order on Thursday finalizing a deal to separate TikTok’s U.S. operations from its Chinese parent company ByteDance. This move aligns with a 2024 law requirement, as reported by a source from the White House to Reuters. The anticipated agreement will secure TikTok’s continued presence in the U.S. market, resolving months of uncertainty and potential government actions to ban the popular social media platform, which boasts 170 million American users.
The negotiation of this deal stemmed from a law passed by the U.S. Congress in 2024 during the Biden administration. The law mandated the transfer of TikTok’s American assets to U.S. ownership due to concerns that Chinese authorities could access U.S. user data. Despite assurances from TikTok that it has not received any data requests from Chinese authorities and that its U.S. data is stored outside of China, the Trump administration had extended the deadline to comply with the law three times. Trump himself acknowledged the role of TikTok in his 2024 election victory and the official White House account on the platform.
Regarding the ownership structure of the proposed deal, details remain vague. Oracle, based in Texas, is expected to oversee the app’s data security and manage the U.S. oversight of its algorithm. This algorithm has been a focal point of controversy, with concerns that it could be subject to manipulation by Chinese entities. Additionally, private equity firm Silver Lake is reportedly part of a group of investors poised to take control of TikTok’s U.S. operations. Notably, ByteDance is anticipated to retain the largest ownership stake, just below the 20% limit set by the law.
Various prominent entities have been linked to the deal, including Microsoft, Amazon, billionaire Frank McCourt, and a consortium led by the founder of OnlyFans. Media mogul Rupert Murdoch and tech entrepreneur Michael Dell are also speculated to be involved, as indicated by Trump in a recent interview. The potential involvement of these individuals reflects a shift towards right-leaning affiliations within the U.S. social platform landscape.
The implications of this deal extend beyond the U.S., potentially serving as a lesson for Canada. While Canada has not implemented a ban on TikTok, privacy concerns have surfaced, with reports of the company collecting sensitive data on underage Canadian users. In 2024, the Canadian government ordered the closure of TikTok’s operations in the country due to undisclosed national security risks. The closure had adverse effects on Canadian content creators and artists, prompting discussions on the effectiveness of such measures compared to the U.S. approach.
In light of these developments, experts suggest that Canada may benefit from revisiting its approach towards TikTok and exploring more collaborative strategies with the platform for mutual benefit.