• President Trump is expected to sign an executive order finalizing the TikTok deal this week.
• Oracle will manage a U.S. version of TikTok's algorithm, ensuring national security compliance.
• The deal involves establishing a joint venture with a majority of American investors.
• Concerns over data security from Chinese ownership led to the requirement for a sale.
• Key figures, including Rupert Murdoch, may invest in the new TikTok structure.

President Donald Trump is poised to sign an executive order this week that will formalize an agreement for TikTok to divest its U.S. operations from its Chinese parent company, ByteDance. This deal aims to address national security concerns regarding user data safety, especially as TikTok claims to have 170 million users in the U.S., according to BBC and SFGate.

Under this agreement, tech giant Oracle will take charge of securing a U.S. version of TikTok's recommendation algorithm, operated within a new joint venture that will include a majority-American board of directors. A senior White House official stated that the algorithm would be "fully inspected and retrained" on U.S. user data to ensure compliance with national security requirements, according to Dawn and Channel News Asia.

The initiative to relocate TikTok's operations into this new entity stems from growing concerns that the Chinese ownership of the app could jeopardize U.S. user data security. Previous warnings from American officials highlighted the potential for manipulation of content on TikTok by China, which makes oversight of the algorithm crucial, as noted by the White House official, according to SFGate and Channel News Asia.

Trump has indicated that there are significant investors interested in this venture, including media mogul Rupert Murdoch and his son Lachlan. The projected valuation of TikTok's U.S. assets is expected to be in the billions, further highlighting the financial stakes involved in these regulatory actions, according to BBC and Dawn.

As part of the arrangements, while Oracle manages the algorithm, ByteDance is expected to retain a minority stake in TikTok U.S. The deal aims to ensure the app can continue operating in the U.S. while adhering to laws requiring divestment from its Chinese ownership, according to SFGate and Channel News Asia.