Trump found a way to save TikTok in the US: who will gain control over the algorithm.

According to Vox: The long-standing uncertainty regarding a possible ban on TikTok in the United States seems to be coming to an end.

The Trump administration has reported that a deal with China regarding the transfer of control of the American part of the app to US control could be nearing completion. Although the details remain unclear for now, it currently appears that the social network, which has approximately 170 million users in the US, will fall under the management of a consortium of wealthy conservative investors, including tech company Oracle and Fox Corporation, which owns Fox News.

If—this is still if—the deal is concluded, it will mark the end of more than a five-year odyssey for TikTok in the US. President Donald Trump attempted to ban the app over concerns about its Chinese origins during his first term but was unsuccessful. Congress took a more decisive approach in 2024, passing a law that required TikTok to be sold to American operators or be shut down. However, when Trump returned to power, he changed his mind: young voters began voting for Trump in 2024, and his campaign partly explained its success by the presence of the TikTok platform. Since then, Trump has signed several (possibly illegal) executive orders that delayed the implementation of the ban.

Co-host of the Today, Explained program Noel King discussed the story with Wall Street Journal reporter Amrit Ramkumar regarding this story, the likely appearance of the American version of TikTok, and the lesser-known billionaire who may receive the keys to the app.

What to expect from the deal

We hear that America will get TikTok. What exactly will America get?

Most importantly, the app will continue to operate in the US. You will be able to keep using it. This is the primary focus of the administration, and they aim to prevent the app from being shut down and any changes.

But if we dig deeper, it is significant that a group of American investors will gain control over the American operations of TikTok. This is something that many people in Washington have sought for five years, and it seems they are close to realizing it.

The TikTok Algorithm

What about the algorithm that makes TikTok TikTok? Will the US get it too?

This is a question worth tens of billions of dollars. Essentially, the answer will be yes, based on what the administration and representatives of TikTok have said. There is a complex mechanism whereby the company ByteDance, the Chinese parent company of TikTok, will copy the algorithm it uses worldwide, and then lease it to the new American structure being created as part of this deal. This new structure will control the algorithm, but it will be US-specific.

Preliminary Agreement

President Trump claims he will sign an executive order about this later this week. What is in the deal? What do we know?

The deal is not finalized yet. That is the first thing to understand. This is a preliminary agreement, a sort of framework. The executive order that the president is about to sign will mainly confirm that the fundamentals of the deal comply with the law and national security requirements. This is one of the steps towards finalizing all the details.

“It is not in their financial interest to come in and make a bunch of changes that completely overturn everything.”

Essentially, under this agreement, American investors and allies will gain control over the new structure created to manage TikTok in the US. There is an understanding that this new group of American investors, the consortium including the private equity firm Silver Lake and Oracle, will make up part of this group and will own about half of this new structure. Existing ByteDance investors, including some of Trump's allies, will own about 30%. This allows ByteDance's ownership stake to drop below 20%, as stipulated by law. It is also worth noting that this consortium changes daily.

Trump mentioned the Murdochs over the weekend. He said Lachlan [Murdoch] may be involved.

Yes. We have been informed that this effectively means that Fox will invest. He also mentioned Michael Dell, who has also been in the spotlight. He may be involved. Trump likes this aspect since now he has a framework deal, and investors are calling, saying: We want to be part of this deal as it is a very valuable company and a lucrative opportunity. And now he has the choice of whom to involve.

So, Oracle has a significant stake. Others may join, others may leave, but Oracle is the real player here. You can't talk about Oracle without mentioning Larry Ellison. Who is Larry Ellison?

How much time do you have? Larry Ellison is one of the richest people in the world. He is a co-founder of Oracle. To summarize: Oracle is becoming one of the most significant tech companies that most people may not have heard of. They are experts in handling large databases, which is critical in social media. More importantly, Oracle is now considered one of the leaders in artificial intelligence, as they provide AI infrastructure and collaborate with companies like OpenAI.

However, Larry Ellison has also expanded into other areas. His family is now preparing a bid for Warner Bros. through their company Paramount Skydance. He has a lot of money, and he is strategically using it. This deal with TikTok could become his latest significant achievement.

This raises concerns. You have wealthy older men, mostly connected to Trump, who will control TikTok. Will they be able to manipulate the algorithm? Will they decide what I see on TikTok?

This is indeed an important question, to which there is currently no clear answer. I think their number one priority is to demonstrate that they can manage the app. They still need to prove the fundamental business case, the justification for a deal worth billions of dollars.

It is not in their interest to make changes that would overturn everything. These people are eager for the deal to be finalized. TikTok wants to operate in the US, and users want the experience to remain unchanged. Changes or actions that could become destructive appear against their interests.

The conclusion of a deal between investors and the Trump administration could significantly change the social media landscape in the US. How the situation develops will determine not only TikTok's future but also the continued influence of Chinese technology on the American market. Users accustomed to the platform eagerly await confirmation of the agreement and the preservation of the established content.