After years of political tension, legal battles, and uncertainty surrounding the popular video-sharing app TikTok, a resolution may finally be on the horizon. According to Treasury Secretary Scott Bessent, US President Donald Trump and Chinese President Xi Jinping are expected to finalize a long-negotiated agreement this Thursday that would allow TikTok to continue operating in the United States under new ownership terms. This development could mark the end of a saga that has captivated the tech industry, policymakers, and millions of TikTok users nationwide.
The negotiations have been complex and protracted, with numerous hurdles along the way. Bessent stated that “the details are ironed out,” emphasizing that his role was to secure Chinese approval for the transaction—a goal that he says has been successfully achieved. Yet, there is still some uncertainty, as previous deadlines have come and gone without a finalized deal. President Trump set multiple deadlines for TikTok to restructure its US operations, only to extend those timelines repeatedly. For instance, TikTok briefly went offline in January just before a planned ban but was back online the next day, highlighting the unpredictable nature of the process.
The origins of this political turmoil date back to 2020, when concerns first emerged in Washington over TikTok’s Chinese ownership and the potential risks to American user data privacy and national security. The app, owned by Beijing-based ByteDance, quickly found itself at the center of a geopolitical storm as US lawmakers feared that the Chinese government could access sensitive information or use the platform to influence American users. This led Congress in 2024 to pass legislation mandating that ByteDance either divest its US operations or face a complete ban of TikTok on American soil.
Since then, TikTok has faced a barrage of executive orders, court challenges, and failed attempts to sell its US operations. The US Supreme Court weighed in earlier this year, upholding the divestment order and rejecting arguments that a ban would infringe on free speech rights. This ruling intensified the urgency for a deal, pushing both parties back to the negotiating table. However, the path to a solution has been riddled with delays and shifting deadlines, reflecting the complexity and high stakes of the situation.
In a significant policy move, President Trump signed an executive order on September 25 that permits the new TikTok ownership to be based in the United States, requiring that the majority of investors and stakeholders be American. This was a critical step toward addressing national security concerns and ensuring that the app’s operations are more closely tied to US interests.
Key elements of the emerging deal include the management of TikTok’s highly influential algorithm and the handling of US user data. The White House confirmed in September that the algorithm—the system that recommends videos to users as they scroll—will be operated within the United States and overseen by Oracle, an American technology company. Oracle’s involvement is central to the deal, as it would bring the algorithm under US control and reduce fears that the Chinese government could manipulate content recommendations to promote pro-China or anti-US messaging.
In addition to Oracle, other major American investors will play a role in the new ownership structure. Private equity firm Silver Lake and Michael Dell, founder and CEO of Dell Technologies, are expected to be part of the investment group. There was some initial confusion regarding media moguls Rupert Murdoch and his son Lachlan Murdoch, with President Trump stating they would be involved personally. However, CNN later clarified that their company, Fox Corp, would be the investor, not the Murdochs as individuals.
A particularly sensitive issue has been the fate of TikTok’s algorithm. This proprietary technology is what powers the personalized content experience that has made TikTok immensely popular worldwide. US officials have been concerned that ByteDance could be compelled by Chinese authorities to tweak the algorithm in ways that subtly push political content favorable to China or unfavorable to the US. Under the proposed deal, the algorithm will be retrained exclusively on US user data, further insulating it from foreign influence.
For TikTok’s vast American user base, who have embraced the app as a cultural phenomenon, this deal promises to preserve their access to the platform without interruption. It would also eliminate the threat of a forced shutdown or the creation of a separate “spinoff” app, scenarios that had been discussed amid the ongoing tensions.
Data privacy is another cornerstone of the proposed agreement. TikTok’s US user data will remain stored domestically and will be managed by a dedicated oversight board. This arrangement aims to address widespread concerns among