Trump’s Controversial TikTok Strategy: Addressing National Security Concerns and Proposing U.S. Ownership Changes

TikTok Deal Raises Concerns of Favoritism and Undervaluation

October 11,2025

Washington D.C. – A looming deal regarding the future of TikTok in the United States is sparking controversy, with allegations that the arrangement could disproportionately benefit individuals with close ties to a previous administration. The situation arises from a 2024 congressional mandate requiring TikTok’s parent company to divest its U.S. assets or face a nationwide ban,a directive that has now moved toward implementation under a recent executive order issued in September.

The Question of Value: Is TikTok Being Undersold?

The White House is reportedly assessing the value of TikTok’s U.S. business at $14 billion, a figure that has drawn sharp criticism from financial analysts.This valuation, representing just 1.4 times the company’s annual U.S. revenue, stands in stark contrast to the valuations of comparable social media giants. For instance, Alphabet, the parent company of YouTube, currently trades at approximately eight times its revenue, while Meta, the parent of Instagram, commands a multiple of ten. Industry experts suggest TikTok’s U.S.operations could realistically be worth upwards of $40 billion.

This discrepancy raises questions about whether the administration is deliberately undervaluing the asset, potentially creating a notable windfall for the eventual buyers. Did You No? Tech company valuations are often based on future growth potential, user base size, and unique technology-factors TikTok possesses in abundance.

Who Are the Potential Buyers and What Criteria Are Being Used?

Unlike a traditional auction process, the selection of TikTok’s U.S. buyers has appeared to prioritize political allegiance over competitive bidding.Individuals publicly mentioned as potential investors include prominent media figures and tech industry leaders, several with established relationships with a former President. Names floated include Rupert and lachlan Murdoch,along with Larry Ellison of Oracle and Michael Dell. The apparent emphasis on loyalty rather than expertise has fueled concerns about cronyism.

The process lacks clarity, leaving many to wonder about the full scope of potential investors and the criteria governing their selection.pro Tip: Diversification of ownership is often considered a best practice in media acquisitions to avoid undue concentration of power.

Content Control and the Algorithm: A Potential Lever for Influence

A central concern revolves around the control of TikTok’s algorithm, the complex system that tailors content to individual users and drives the platform’s addictive nature. The agreement will reportedly transfer ownership of this algorithm to the new investors. The degree to which these investors will be able to modify or manipulate the algorithm remains unclear. However,given the algorithm’s power to shape public opinion,its control represents a ample point of leverage.

Further fueling these concerns,a recent statement from a former President suggested an expectation of reciprocation from TikTok users,stating,”I saved TikTok,so you owe me big.” this statement raises questions about potential attempts to influence the platform’s content or user experience in the future.

Data Security and the Oracle Agreement

Initial anxieties surrounding TikTok centered on the potential for the Chinese government to access user data. ByteDance, TikTok’s parent company, attempted to address these concerns in 2022 through an agreement to store U.S. user data on servers managed by Oracle. however, critics argue this arrangement may not be sufficient to fully safeguard user privacy and data security. The incoming deal is expected to maintain this existing Oracle agreement, leaving some continued unease.

Concern	Current Status
TikTok Valuation	Reported at $14 Billion, considered substantially undervalued.
Buyer Selection	Prioritizing political ties over competitive bidding.
Algorithm Control	Transferring to new investors, potential for manipulation.
Data Security	Reliance on existing Oracle agreement, concerns remain.

The Long-Term implications for TikTok and U.S. Policy

The outcome of this deal will have far-reaching implications for the future of social media, data security, and the relationship between the united States and China. The lack of transparency and the potential for undue influence raise serious questions about the fairness and integrity of the process. With a deadline of December 16 looming, the pressure is on for lawmakers to demand answers and ensure the deal serves the best interests of the American people.

What safeguards should be in place to prevent political interference in TikTok’s content moderation practices? Do you believe the current valuation of TikTok accurately reflects its market worth?

Understanding the TikTok Controversy: A Broader context

The debate surrounding TikTok extends beyond its Chinese ownership. Concerns about data privacy are pervasive across the entire social media landscape. The Cambridge Analytica scandal involving Facebook, for instance, highlighted the potential for user data to be exploited for political purposes. Furthermore, the addictive nature of social media algorithms is increasingly recognized as a public health concern, prompting calls for greater regulation and user awareness. the TikTok situation serves as a focal point for these broader discussions about the responsible use and governance of social media platforms.

Frequently Asked Questions About the TikTok Deal

• what is TikTok’s current ownership structure? TikTok is currently owned by ByteDance, a Chinese company.
• Why is the U.S. government forcing a sale of TikTok? Concerns over national security and data privacy prompted a congressional mandate to divest TikTok’s U.S.operations.
• What is the proposed valuation for TikTok’s U.S. business? The White House is reportedly valuing the business at $14 billion.
• Who are the potential buyers of TikTok U.S.? Individuals mentioned include Rupert Murdoch, Lachlan Murdoch, Larry Ellison, and michael Dell.
• Will the sale of TikTok address data security concerns? The current plan relies on an existing agreement with oracle, but concerns remain.
• What role will ByteDance play after the sale? ByteDance is expected to retain approximately 20% ownership and lease access to the TikTok algorithm.
• How could this deal impact the content that users see on TikTok? The new owners could potentially influence the algorithm and control content moderation.

Share your thoughts on this developing story. What are your concerns about the future of TikTok in the U.S.? Let us know in the comments below.

How might China’s National Intelligence Law impact TikTok’s data security,even with Project Texas in place?

The Evolution of the TikTok Debate

The saga surrounding TikTok in the United States has been a complex and evolving one, especially under the renewed focus of a potential second Trump governance. Initially, the concerns centered around data security and the potential for the Chinese government to access user information via ByteDance, TikTok’s parent company. These fears weren’t unfounded, stemming from China’s National Intelligence Law, which compels organizations to cooperate with state intelligence agencies.

The initial attempts to ban TikTok during the first Trump administration faced legal challenges, largely due to concerns over First Amendment rights and due process. These challenges highlighted the difficulty of outright banning a platform so widely used, especially by younger demographics. The focus has now shifted towards a more nuanced approach: forced sale to a U.S.entity.

Project Texas and its Limitations

Before the current push for a full sale, ByteDance initiated Project Texas, a $1.5 billion plan aimed at addressing U.S. national security concerns. This involved:

* Storing U.S. user data on servers located within the United States, managed by Oracle.

* Allowing Oracle to independently audit TikTok’s algorithms and source code.

* Creating a U.S.-based security team to oversee data access and security protocols.

while Project Texas was intended to alleviate concerns, many within the U.S. government and security community remained skeptical.Critics argued that even with these measures, ByteDance could still be compelled by the Chinese government to provide access to data or manipulate the platform’s algorithm. The core issue remained: ultimate control resided with a Chinese company. TikTok security concerns persisted.

The Renewed Push for a Forced Sale: A Detailed Look

In early 2024, former President Trump signaled a critically important shift in his stance, advocating for a complete ban of TikTok unless it was sold to a U.S. company. This isn’t simply a reiteration of the previous ban attempts. The current strategy emphasizes a forced sale of TikTok, rather than an outright prohibition.

Key aspects of this renewed strategy include:

1. Identifying Potential U.S. Buyers: Several companies have reportedly expressed interest, including Oracle, microsoft (who previously explored a deal in 2020), and perhaps private equity firms.
2. Legislative Action: Congress is actively considering legislation that would grant the executive branch the authority to ban TikTok if ByteDance fails to divest its ownership within a specified timeframe. The “Protecting americans from Foreign Adversary Controlled Applications Act” is central to this effort.
3. national security Review: Any potential sale would be subject to rigorous review by the Committee on Foreign Investment in the United States (CFIUS) to ensure it adequately addresses national security risks. CFIUS review is crucial.
4. Algorithm Transparency: A key demand is complete transparency regarding tiktok’s algorithm, ensuring it cannot be used for propaganda or to manipulate public opinion.

Potential U.S. Buyers and Their Implications

The identity of the eventual buyer will significantly impact the future of TikTok and the broader social media landscape.

* Oracle: As the company already involved in Project Texas, Oracle has a head start in terms of understanding TikTok’s infrastructure and security requirements. However, concerns exist about Oracle’s existing business relationships with the U.S. government and potential conflicts of interest.

* Microsoft: Microsoft’s previous attempt to acquire TikTok demonstrated its technical capabilities and willingness to navigate the complex regulatory landscape. A microsoft acquisition could potentially integrate TikTok’s features into its existing suite of products.

* Private Equity: A private equity firm could offer a neutral solution, focusing on maximizing profitability without the same political considerations as larger tech companies. However, concerns remain about potential cost-cutting measures that could compromise data security.

The Impact on Users and Content creators

A change in ownership could have significant implications for TikTok’s 170 million U.S. users and the millions of content creators who rely on the platform for income and exposure.

* Content Moderation: Changes in ownership could lead to shifts in content moderation policies,potentially impacting the types of content allowed on the platform.

* Algorithm Changes: A new owner might alter the algorithm, affecting the visibility of content and the reach of creators.

* Data Privacy: while a U.S. owner is expected to prioritize data privacy, concerns remain about how user data will be handled and protected.

* Creator Fund & Monetization: The future of tiktok’s Creator Fund and other monetization programs is uncertain under new ownership.

Legal Challenges and Potential Outcomes

the path to a forced sale is fraught with legal challenges. ByteDance is likely to contest any attempt to compel a sale, arguing that it violates due process and property rights.

Potential outcomes include:

* Successful forced Sale: ByteDance agrees to sell TikTok to a U.S. entity,subject to CFIUS approval.

* Prolonged Legal Battle: ByteDance challenges the forced sale in court, potentially delaying the process for years.

* Partial Ban: If a sale cannot be reached, the U.S. government may resort to a partial