Emerging TikTok Deal Hands Control of Algorithm and US Board to American Companies

A significant development has emerged in the ongoing negotiations over TikTok’s operations in the United States. The White House has revealed that the evolving agreement aims to secure American control of both the video platform’s influential algorithm and the majority of seats on a board overseeing its US activities.

Central to the discussions is the fate of TikTok’s proprietary algorithm, a major point of contention between Washington and Beijing. The algorithm, which drives the app’s highly personalised video feed, has long been seen as a valuable asset and a potential security concern for US regulators. Following extensive negotiations, the proposed deal ensures that US-based companies would hold authority over the algorithm, addressing one of the key apprehensions voiced by American policymakers.

The legislative landscape for TikTok has remained complex. US Congress had previously passed legislation mandating a ban on the social video app unless its Chinese parent company, ByteDance, sold the US arm of its business. This measure was scheduled to take effect in January, casting uncertainty over TikTok’s future in one of its largest markets. However, President Donald Trump has issued repeated executive orders allowing TikTok to continue operating while the details of a divestment agreement are finalised.

Under the newly outlined terms, Oracle—a major US technology company—will be entrusted with managing TikTok’s data and ensuring the platform’s security on American soil. The proposed oversight board will be comprised of seven seats, with Americans occupying six, giving clear majority control to US stakeholders. White House press secretary Karoline Leavitt reinforced the administration’s confidence in the agreement, stating, “We are 100% confident that a deal is done, now that deal just needs to be signed and the president’s team is working with their Chinese counterparts to do just that.”

Recent diplomatic engagement has included a lengthy telephone discussion between President Trump and China’s President Xi Jinping. While the precise terms agreed by Beijing remain somewhat ambiguous, US officials publicly assert that control of the crucial algorithm will rest with American interests. President Trump, following the call, maintained openness on this central issue, saying only, “It’s all being worked out. We’re going to have very good control.”

With investor interest on the American side already strong and final negotiations reportedly nearing completion, administration officials anticipate that the formalisation of the deal is imminent. The broader implications for regulators, investors, and users remain substantial as this agreement will shape not only the governance of TikTok but could also set a precedent for technology ownership and regulatory frameworks in future cross-border digital negotiations.