TikTok U.S. Deal Nears Final Stage With Oracle’s Role

TikTok U.S. Deal Nears Final Stage With Oracle’s Role

Post by : Jyoti Gupta

Sept. 21, 2025 8:20 a.m. 502

A major decision about the future of TikTok in the United States is moving closer to reality. The White House announced that a new deal is almost ready that would reshape how the video-sharing app operates in the country. This decision comes after years of debate and concerns over data safety, political influence, and national security.

The Planned Deal Structure

According to the latest details, TikTok’s U.S. business will soon have a new board of directors. Out of seven seats on this board, six will be held by Americans. This arrangement is designed to ensure that decisions about the app in the United States will remain under strong American influence. Officials explained that the agreement could be signed in just a few days if all sides agree.

Why the Deal is Happening

The United States government has been pressuring TikTok’s Chinese parent company, ByteDance, to sell its U.S. operations. The main concern has been that data collected from American users could be accessed by China, or that the app’s algorithm might be used to control what people see online. These fears have been raised for years by different political leaders, who argue that the safety of personal information and free expression must be protected.

Back in 2023, a law was passed in the U.S. requiring ByteDance to either sell TikTok’s American operations or face a complete ban of the app. While TikTok is loved by millions of young Americans, its ties to China created tension that Washington could not ignore.

Trump’s Changing Approach

President Donald Trump, during his earlier term, was one of the first leaders to raise alarms about TikTok. Ironically, he later turned to the platform during his 2024 presidential campaign, using it to connect with younger voters. His use of TikTok helped boost his popularity, but it also placed him in a complicated position.

Instead of rushing to ban the app, Trump delayed the enforcement of the law, giving time for a deal to be worked out. Now, during his new presidency, the pressure to finalize that deal has grown stronger.

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Oracle’s Key Role

One of the most important parts of the agreement is the involvement of Oracle, a powerful American technology company led by billionaire Larry Ellison. Oracle is expected to take charge of handling TikTok’s data and privacy protections inside the United States. This means that sensitive user information, such as names, phone numbers, and viewing habits, would be stored under U.S. control rather than overseas.

Not only data, but TikTok’s famous algorithm—which decides what videos people see—would also be managed in America. This move is seen as critical to making sure the app cannot be influenced by any foreign government.

Conversations Between Leaders

Just before the announcement, President Trump held a phone conversation with Chinese President Xi Jinping. According to Trump, the Chinese leader gave his approval to the plan. However, Beijing has not officially confirmed this. Trump, while speaking about the deal, said, “We’re going to have very, very tight control. TikTok has tremendous value, and I did very well on it myself.”

This suggests that even though there is progress, the final step still depends on signatures from both sides.

Possible Financial Gain for the U.S.

Reports also indicate that the U.S. government might receive billions of dollars in fees from the investors who buy into TikTok. Such a payment would be part of the broader arrangement, showing just how large and valuable this deal is.

Why TikTok Matters

TikTok is not just another app—it has become one of the most powerful platforms in the world for entertainment, news, and communication. Millions of Americans use it daily, especially young people who rely on it for trends, music, and short videos. Any threat to ban or control TikTok instantly makes headlines because of how deeply it is tied to modern culture.

The debate around TikTok highlights a bigger global issue: how much influence one country should have over technology used in another. For the United States, ensuring that data stays safe and that social media platforms remain independent has become a major priority.

What Happens Next

If the deal is signed in the coming days, TikTok’s U.S. operations will be reshaped with American oversight. Oracle would officially handle data security, and the new board of directors would make key decisions. This would mark one of the biggest steps taken by any government to control the power of a foreign-owned social media app.

But questions remain: Will China fully accept this arrangement? Will the U.S. government still consider other restrictions in the future? For now, what is certain is that TikTok’s journey in the U.S. is about to change in a big way.

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