US and China close to agreement on TikTok's US operations and algorithm

Hold onto your smartphones, folks—TikTok might just dodge the ban hammer in the US with a last-minute deal between Washington and Beijing that’s got everyone buzzing.

After years of heated debate over national security and the app’s influence on young minds, the US and China are nearing an agreement to keep TikTok running stateside by selling a controlling stake to American investors and rebuilding its core algorithm on US soil.

This saga has been dragging on longer than a bureaucratic budget meeting, with critics raising valid concerns about espionage risks and the mental health impact on teens, especially the 18-24 crowd who make up TikTok’s biggest fanbase.

TikTok deal imminent

Top White House officials confirmed a framework for this deal earlier this week, aiming to settle the long-standing question of whether TikTok can operate in the US without being a pawn of Beijing.

Under current law, TikTok must cut ties with its Chinese parent company, ByteDance, to stay active here, and this agreement seems poised to meet that demand by creating a new US-based entity worth up to $50 billion.

ByteDance will hold onto a minority 19.9% stake in this new outfit while keeping full control of its global operations, valued at nearly $300 billion—talk about playing both sides of the geopolitical chessboard.

American investors take lead

The majority owners of this revamped US TikTok will reportedly include heavy hitters like Jeff Yass of Susquehanna International and Bill Ford of General Atlantic Partners, with smaller investors clamoring for a slice of the pie.

One potential investor quipped to On The Money, “Everyone and their dog wants a piece of this thing now that it looks like it will have the full blessing of Trump, Congress, and the Chinese.” Well, when a platform boasts 172 million US users, who wouldn’t want in?

Oracle co-founder Larry Ellison is also stepping up, offering to house the new company in Oracle’s cloud, though it’s unclear if he—or perhaps his son David, fresh off an $8 billion Paramount deal—will snag an equity stake.

Algorithm debate at the core

The sticking point in all this has been TikTok’s recommendation algorithm, the secret sauce that keeps users hooked, which some Republican hardliners fear could still be a backdoor for Chinese surveillance or propaganda.

China initially balked at relinquishing control, but President Xi reportedly agreed to a compromise, allowing US tech experts to replicate and replace the algorithm for the American market—a move to break free from Beijing’s grip.

This workaround is expected to satisfy bipartisan legislation, upheld by the Supreme Court, that bars Chinese control over TikTok if it wants to keep operating on US turf.

Trump’s role in the negotiations

President Trump, who once pushed hard against TikTok, has now delayed the ban with executive orders and announced a deal for a “certain company” that the youth of America desperately wanted saved.

In a Truth Social post, Trump boasted, “A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save.” If that’s not a nod to TikTok’s cultural clout, what is—though let’s hope this isn’t just another social media mirage.

With trade talks wrapping up in Europe, Trump plans to hash out final details with President Xi soon, and may even extend the latest deadline beyond the usual 90 days to iron out the complex algorithm puzzle—because apparently, even digital recipes take time to cook.