US President Donald Trump is set to sign off on a deal Thursday in Washington (Friday AEST), handing majority ownership of TikTok’s American operations to a group of domestic investors and ensuring the app remains available to its 170 million users.

According to White House officials, the new structure will see Oracle, Silver Lake, Andreessen Horowitz and other heavyweight backers – reportedly including Rupert and Lachlan Murdoch – take a combined 80% stake in a new joint-venture company.

TikTok’s Chinese parent ByteDance will be left with less than 20%.

Oracle, already managing TikTok’s US data through its “Project Texas” hosting arrangement, will continue as the platform’s security and cloud provider.

The app’s algorithm, which has long been a sticking point in negotiations, will be copied and leased to the US entity, with its retraining and monitoring overseen onshore.

Rupert (right) and Lachlan (left) Murdoch are tipped to join the investor group taking control of TikTok

The deal is designed to comply with bipartisan legislation passed in 2024 requiring TikTok to divest from Chinese ownership or face a nationwide ban.

The app was briefly shutdown in the US earlier this year before Trump extended multiple deadlines to finalise a sale.

Under the agreement, the new US-based company will operate with a seven-member board, six of whom will be appointed by American investors. ByteDance will be allowed to nominate just one director.

The White House stressed that the new arrangement prevents any possibility of Chinese government access to US user data, a concern repeatedly raised by security officials.

TikTok’s US arm is valued at between US$35–40 billion (A$54–62 billion).

Trump described the incoming owners as “prominent business leaders” and “American patriots,” pointing to figures such as Oracle co-founder Larry Ellison and Dell CEO Michael Dell as key players in the group.