TikTok U.S. Takeover: Trump’s Deal Hands Control to Oracle and Investors

After months of uncertainty, negotiations, and threats of an outright ban, TikTok’s U.S. operations have officially been pulled into American control. What began as political sparring between Washington and Beijing has now ended in a landmark deal that places the popular short-video app firmly in the hands of American investors.

Former U.S. President Donald Trump announced the agreement, describing it as a win for national security and a safeguard for American users’ data. “We are leaving it to American investors and companies—some of the biggest and most respected,” Trump said, while also noting that he had spoken directly with China’s President Xi Jinping about the matter. According to him, Xi “gave the go-ahead,” though Beijing has yet to publicly endorse the deal.

A New American Entity

TikTok’s U.S. business will now spin off as an independent company valued at approximately $14 billion. The restructuring significantly reduces the influence of its Chinese parent firm, ByteDance. While ByteDance will still retain a 19.9% stake, the majority of the app’s American operations will be overseen by a consortium of U.S. investors, ensuring Washington’s demand for greater oversight is met.

Leading the charge is Oracle, the U.S. tech giant headed by billionaire Larry Ellison. Oracle will play a key role in safeguarding TikTok’s data security, a central concern of U.S. regulators. Private equity powerhouse Silver Lake and Michael Dell are also among the new stakeholders. Adding a global twist, Abu Dhabi’s state-backed investment fund MGX, chaired by Sheikh Tahnoun bin Zayed Al Nahyan (brother of UAE President Mohammed bin Zayed), has secured a 15% stake and a board seat. Collectively, these investors will hold about 45% of the new TikTok U.S., with overall American ownership surpassing 65%.

Other high-profile figures, including media mogul Rupert Murdoch, have also been linked to the deal. Together, this lineup reflects the fusion of Silicon Valley capital and Wall Street influence—precisely the type of arrangement Washington envisioned to bring TikTok into its orbit.

Why Washington Pushed the Deal

For decades, the social media landscape was dominated by American platforms—Facebook, Twitter, Instagram, Snapchat, and YouTube all emerged from California and quickly spread across the globe. That dominance was disrupted by TikTok, a Chinese import that captured the hearts of young Americans almost overnight.

Today, TikTok boasts around 170 million U.S. users, nearly half of the country’s population. Among teenagers, the penetration is even deeper: 63% of U.S. teens regularly use the app. For policymakers in Washington, the idea of a Chinese company holding that much influence over American audiences raised alarm bells.

Beyond cultural influence, data security was the primary issue. Like all social platforms, TikTok collects mountains of user data—locations, browsing patterns, and even contact lists. Under China’s national security laws, ByteDance could theoretically be compelled to share that data with Beijing. Though TikTok has repeatedly denied handing over data to Chinese authorities, American officials remained skeptical.

The deal therefore reflects more than financial restructuring. It is a matter of strategic control: ensuring that U.S. user data remains on American soil and outside the reach of Chinese law.

China’s Delicate Position

How does Beijing view the forced restructuring of one of its most successful tech exports? Officially, Chinese authorities have kept largely quiet, avoiding outright condemnation. But analysts note that silence should not be mistaken for acceptance.

The deal represents a humiliating precedent: a Chinese company being forced to surrender a prized global asset under U.S. political pressure. Approving the arrangement ensures TikTok’s survival in its largest market outside China, but it also signals weakness in the face of Washington’s demands. On the other hand, outright rejection of the deal could have led to TikTok’s ban in America—cutting off its access to millions of users and billions in potential revenue.

For Beijing, it is a bitter pill to swallow. The Chinese government now faces a dilemma: accept this precedent or push back against similar U.S. moves in the future.

A Message to the World

This saga carries implications far beyond TikTok. For decades, the global pattern was clear: if you were on social media, you were most likely using an American product. TikTok broke that monopoly, becoming the first non-U.S. platform to dominate in America. Washington’s aggressive intervention restores the old balance, ensuring that no foreign competitor can outshine homegrown tech giants on American soil.

The broader message is hard to ignore: the United States welcomes the world to use American apps, but it will not tolerate foreign platforms dominating its domestic market—especially when the competitor is Chinese.

What Comes Next

With TikTok U.S. now under majority American ownership, Oracle and its partners will face the challenge of balancing user experience with tighter regulations. Security protocols will be strengthened, but whether that affects TikTok’s signature algorithm—the very feature that drives its popularity—remains to be seen.

Meanwhile, China will likely search for ways to shield its other global tech firms from similar scenarios. As great-power competition intensifies, the TikTok case may become the first of many where politics reshapes the structure of global business.

For users, the short-term impact will be minimal. The app will continue operating as usual, but behind the scenes, the ownership and oversight have shifted dramatically. The viral dances, comedy skits, and creative trends that make TikTok a cultural phenomenon are still there—only now, they are overseen by American investors with Washington’s blessing.

In short, the TikTok deal is about much more than one app. It reflects the collision of technology, politics, and national security in an era where information is as powerful as oil or gold.