A proposed divestment deal for TikTok’s U.S. operations from its Chinese owner ByteDance is nearing completion, with management of the app’s algorithm set to be transferred to tech giant Oracle. Under the agreement, TikTok’s U.S. operations will be handed over to an investor consortium including Oracle, Silver Lake, and Andreessen Horowitz. The deal aims to address national security concerns, as U.S. officials have previously warned that the algorithm powering user content could be manipulated by Chinese authorities to influence public perception.

ByteDance will retain a stake of less than 20% in the U.S. operations. Oracle will receive a copy of the algorithm and oversee the app’s security, with the system “fully inspected” for irregularities. A senior White House official stated that the content recommendation formula will be retrained using U.S. data to ensure compliance. While it remains unclear if this will create a distinct TikTok experience for American users, White House press secretary Karoline Leavitt emphasized that cross-border video sharing would remain possible.

President Trump is set to sign an executive order later this week, designating the deal as a qualified divestiture under the ban-or-sale law. The order will also extend the pause on enforcing the law by 120 days to allow for regulatory approvals. ByteDance is expected to finalize an agreement with the new investors, with the deal likely completed early next year. Officials have long emphasized the algorithm’s critical role in TikTok’s popularity and its potential risks, citing concerns over foreign influence. Under the terms, Oracle will monitor content distribution continuously while the new ownership group reviews and retrain the algorithm using U.S. user data.