President Donald Trump on Thursday announced a landmark agreement that will transfer ownership of TikTok to a consortium of American investors, effectively averting a nationwide ban on the popular social media platform and marking a significant shift in the app’s future.
Speaking from the Oval Office, Trump confirmed that the new deal brings TikTok’s closely guarded algorithm under U.S. control, a move he said would safeguard user data and prevent potential foreign influence. The agreement, backed by Chinese President Xi Jinping according to Trump, is expected to be fully implemented in the coming weeks.
“This is a big win for data security, national sovereignty, and the millions of Americans who use TikTok every day,” Trump said. “With this agreement, TikTok will be owned and operated by American companies and Americans.”
Vice President J.D. Vance, who stood alongside Trump during the announcement, said the deal will ensure that TikTok’s algorithm—responsible for curating and recommending viral content—will no longer be controlled from abroad.
“This agreement gives us control of the technology, of the data, and of the direction of the platform,” Vance stated. “Americans can now use TikTok with far more confidence than ever before.”
He added that the new U.S.-based version of TikTok will be valued at $14 billion, though details about the full ownership structure are expected to be released in the coming days.
Trump revealed that tech firm Oracle would be among the lead investors in the new venture. He did not name additional backers but indicated the group would comprise “a powerful and secure coalition of U.S. interests.”
While Trump claimed Chinese President Xi Jinping had approved the deal, Chinese authorities have not publicly confirmed or commented on the arrangement.
The announcement concludes months of uncertainty following bipartisan legislation passed last spring that gave TikTok 270 days to sever ties with Chinese parent company ByteDance or face a U.S. ban. That law followed mounting concerns over data privacy, national security, and the platform’s potential use for foreign propaganda.
Rather than initiate an immediate sale, TikTok challenged the law on First Amendment grounds. However, the U.S. Supreme Court unanimously upheld the legislation, citing legitimate national security risks tied to foreign ownership of digital platforms.
The app was briefly removed from app stores in January, but enforcement was paused as the administration resumed talks with TikTok and potential U.S. investors.
Trump framed the deal as a triumph for American security and technological independence, declaring the agreement a template for future digital policy.
“Other countries should take note—America will no longer tolerate foreign control over apps that reach our citizens,” he said. “We put American interests, privacy, and safety first.”
The announcement is expected to resonate across the tech industry and geopolitical circles as the U.S. moves to set firmer boundaries around digital sovereignty, particularly in platforms with massive user bases and global reach.
TikTok has more than 170 million users in the United States. The new agreement, officials said, will allow the app to continue operating domestically without risk of suspension or legal challenges.
