Trump thanks Xi as US investors secure 80.1% stake in TikTok deal

US President Donald Trump expressed his gratitude to Chinese President Xi Jinping for approving the agreement that sees American investors take control of TikTok’s US operations.

Trump posted on his social media platform, Truth Social, expressing his delight in finalising the deal, which he described as a beautiful and grand conclusion. He praised Xi's decision to approve the deal, acknowledging that the Chinese leader could have chosen not to approve it.

Trump further revealed that TikTok played a pivotal role in boosting his popularity among younger voters during the 2024 elections.

Introducing TikTok USDS: American investors in full control

The nearly six-year-long saga has come to a close with the establishment of a new joint venture company, TikTok USDS Joint Venture LLC. This independent entity was created following Trump’s executive order.

Under the agreement, American investors and legal entities now own a combined 80.1% of the new joint venture, while ByteDance, the Chinese parent company, retains only 19.9% of the shares.

The three major investors taking on leadership roles are:

• Oracle: The cloud computing giant led by Trump supporter Larry Ellison will hold a 15% stake.
• Silver Lake: A major US-based tech investment firm also holds 15%.
• MGX: A technology and AI investment company from the UAE will hold 15%.

Additionally, other investors, including Michael Dell’s family office and Vastmere Strategic Investments, will hold the remaining 35.1% stake.

Enhancing security: Algorithm separation and data storage on Oracle Cloud

A key component of the deal addresses the handling of TikTok’s "algorithm," the secret formula that recommends content. Initially, China was reluctant to allow the transfer of this technology. However, under the current agreement, the algorithm for the US version of TikTok will be separated and retrained using data from American users only.

Oracle will oversee the security and storage of all user data on US-based cloud servers, addressing the national security concerns that have been a longstanding issue for Washington.

Former WarnerMedia executive Adam Presser has been appointed CEO of the new joint venture. The company will have a seven-member board, the majority of which will be American. However, Shou Zi Chew, the global CEO of TikTok, will remain on the board to maintain a connection with the platform’s international operations.

A six-year battle ends

This deal marks the end of a long-standing conflict that began in 2020 during Trump’s first term and escalated under Joe Biden’s presidency, culminating in a 2024 law mandating a sale or a ban. 

Despite a brief "blackout" for TikTok in early 2025, Trump’s involvement and multiple delays to the ban allowed for negotiations to continue, ultimately leading to an agreement with Beijing.

As a result, over 200 million American users and 7.5 million US businesses can continue to use TikTok, along with its sister apps, CapCut and Lemon8, under the oversight of the new joint venture.