Trump secures landmark TikTok deal with U.S. investors holding 80% control, Oracle to safeguard data, algorithm rebuilt under American oversight, national security concerns addressed in U.S.-China breakthrough.
Trump Hails Patriots as TikTok’s New Guardians in Landmark US-China Deal
Washington, D.C. – September 21, 2025 – President Donald J. Trump today declared victory in what he called a landmark diplomatic and economic triumph, assuring Americans that TikTok will remain secure under the stewardship of elite U.S. investors. Speaking outside the White House, Trump described the buyers as “Great American Patriots” and “very, very substantial people” who not only love the country but also possess unmatched technological expertise. He added, “They will not let anything bad happen to TikTok,” framing the agreement as a win for both national security and free expression.
This announcement comes after a week of intense negotiations that avoided a looming U.S. ban on the short-video platform, used by more than 170 million Americans. The deal, finalized following a September 19 phone call between Trump and Chinese President Xi Jinping, shifts control of TikTok’s U.S. operations from its Beijing-based parent ByteDance to a new American-led entity. Under the framework, ByteDance will retain only a capped minority stake of 20 percent, while American investors will hold 80 percent ownership. The board will have seven members, six of them Americans, with one appointed by the U.S. government to ensure oversight.
The structure of the agreement was first announced on September 16, a day before the divestiture deadline, and extends TikTok’s operational lifeline until December 16, 2025. This gives time for a full transition. The investor consortium leading the takeover is comprised of powerful Trump allies and tech giants. Oracle’s Larry Ellison will oversee data security, a role he is familiar with since Oracle has hosted TikTok’s U.S. user data since 2020.
Venture capitalist Marc Andreessen, known for backing AI and crypto innovations, will guide work on TikTok’s algorithm and content moderation. Egon Durban of Silver Lake Partners will bring private equity expertise to secure financial backing for the deal. Additional investors include General Atlantic and Susquehanna International Group, forming the “very wealthy” group that Trump teased as early as June.
White House Press Secretary Karoline Leavitt confirmed that Oracle will be responsible for securing TikTok’s servers and algorithm, a critical safeguard to prevent misuse or espionage. One of the most complex aspects of the deal is the app’s “For You” algorithm, the engine behind its success. Since China refused to sell the original code, the agreement mandates that ByteDance will have no cooperation role in its redevelopment.
This means the new U.S.-led entity will have to rebuild TikTok’s recommendation system from scratch, under strict federal audits. The deal thus complies with the 2024 bipartisan law signed by President Biden and upheld by the Supreme Court, which declared ByteDance ownership a “national security threat of immense depth and scale.”
The framework of the deal was shaped during talks in Madrid between U.S. Treasury Secretary Scott Bessent and Chinese Vice Minister Li Chenggang. Trump issued a series of executive orders delaying enforcement of the ban, starting from January 2025’s original deadline, and extending it multiple times until his call with Xi Jinping sealed the breakthrough. According to the agreement, ByteDance must fully divest by December 2025 or face a complete shutdown in the U.S.
Trump’s remarks, delivered on his way to a campaign event, echoed his earlier efforts from 2020 when a similar deal failed to materialize. “We’re moving along great. An American company is buying it. We won’t let anything bad happen to it,” he said, praising the buyers without naming names but emphasizing their patriotism and technological skill. He also highlighted parental lobbying to keep the app alive, noting, “They say if I don’t get it done, they’re in big trouble with their kids. And I think it’s great.” Clips of his statement quickly spread across social media platform X, where accounts like @RapidResponse47 and @MarioNawfal shared the video that reached over 200,000 views within hours.
The TikTok saga traces back to 2020 during Trump’s first term, when earlier attempts involving Microsoft, Walmart, and Oracle collapsed. After the 2024 election, negotiations resumed but faltered in April amid Trump’s tariff battles with Beijing. By the summer of 2025, the White House extended deadlines and engaged directly in talks, with momentum returning after U.S.-China trade discussions in Spain.
National security officials, including former FBI Director Christopher Wray, consistently raised concerns over potential data harvesting by ByteDance, particularly on sensitive topics like gun ownership and abortion. TikTok, however, maintained that its U.S. operations remained siloed from Beijing. This deal, by transferring majority control to American investors, is intended to neutralize such fears.
The timeline of this saga is marked by several turning points: Trump’s original divestiture order in 2020, Biden’s 2024 law mandating a ban, Trump’s January 2025 inauguration which delayed enforcement, and the September 19 Trump-Xi call that finalized the breakthrough.
Reactions to the deal have been sharply divided. Supporters, especially from the MAGA movement, celebrated it as a “win for America First.” Posts praising Trump’s clip on X quickly gained traction, with thousands of likes. Critics, however, accuse Trump of dragging his feet, with bipartisan lawmakers charging that he has been “flouting the law.” Media outlets like The Bulwark described the sale as a handoff to GOP mega-donors, while privacy advocates expressed concern that rebuilding TikTok’s algorithm from scratch could disrupt user experience.
Globally, BBC and Reuters hailed the deal as a diplomatic success, though Chinese officials downplayed it, calling discussions “ongoing.” TikTok itself issued a brief statement promising that it would remain available to American users.
As the agreement moves into implementation, Trump’s TikTok gamble showcases his signature style of extending deadlines, using personal diplomacy, and ultimately handing over control to loyal allies. For the millions of users and creators, the app remains intact for now. Whether the “patriots” can deliver a smooth transition and protect TikTok’s popularity remains to be seen.