Sept. 26 (UPI) — President Donald Trump signed an executive order Thursday to complete a deal to keep TikTok active for 170 million U.S. users with U.S. investors owning 80% of the company.

The deal creates a U.S. entity to control TikTok while ByteDance will maintain less than a 20% stake. A board of directors composed chiefly of Americans will oversee the operation of TikTok, including its highly sought-after algorithm.

Data on U.S. users will be stored and managed by Oracle, a technology company based in Nashville. ByteDance partnered with Oracle in 2020 to house U.S. user data in the United States due to concerns about data security from the U.S. government.

During the signing of the executive order at the White House, Trump said the deal was approved by Chinese President Xi Jinping during a phone conversation last week.

“He gave us the go ahead,” Trump said. “I told him what we’re doing and he said go ahead with it.”

Speaking to the details of the deal, Trump named some of the investors, including Rupert Murdoch and Mike Lindell. Vice President J.D. Vance said more information about the other investors will be announced in the coming days.

Vance added that TikTok will be valued at $14 billion.

Asked if TikTok will begin to favor “MAGA” content, Trump said it will be fair.

“If I could make it 100% MAGA I would but it’s not going to work out that way unfortunately,” Trump said. “Everyone is going to be treated fairly. Every group, every philosophy will be treated fairly.”

The executive order says the president will have the authority to determine that TikTok has undergone a “qualified divestiture” through an interagency process. If the president makes this determination, the act’s prohibitions can be removed.

The deal will bring TikTok into compliance with the law passed by U.S. Congress last year requiring it to be owned and operated by a U.S. company. Congress passed the law out of concern that the application posed a national security threat, due to ByteDance being based in China.

There is still more information to come about the agreement between the United States, ByteDance and China. The executive order has been signed but it will take weeks to months for the divestiture and formation of the new TikTok corporate structure to be complete, said Norman Bishara, professor of business law and ethics in the Stephen M. Ross School of Business at Michigan.

“The devil is in the details,” Bishara said. “Until we really see this in writing and have all the details it’s hard to fully assess if they are complying with the letter of the law and the spirit of what Congress wanted in the first place.”

The White House stated the federal government will not play a role in selecting members for TikTok’s board, but the president’s role in brokering the agreement is “extraordinary,” Bishara said.

“Even without the direct control of the U.S. government or the ‘golden share’ that’s been discussed, it still seems a safe bet that the folks on the U.S. side like Silver Lake [Technology Management] and Oracle are aligned with the interest of the government and the Trump administration,” he said.

Andrew Verstein, professor of law at UCLA, told UPI the TikTok deal responds to concerns expressed by Congress, localizing operations in the United States. However, the inherent nature of its algorithm will still require data to cross borders.

“We were worried that a Chinese-owned and Chinese-controlled company with a pretty complicated technical architecture was up to bad things. So we passed a law,” Verstein said. “What we got was a compromise. The company is going to be largely owned by Americans and partially controlled by Americans, but not fully owned and controlled by Americans. So this is a compromise between those two visions and in some ways it’s worse than both things.”

Verstein said the new concern that the deal creates is that the perceived “bad things” that Congress and national security experts worried about China doing — surveillance, propaganda campaigns and misinformation — will be continued under American control.

“Granting Americans equity in the company gives them a greater incentive to do whatever is most profitable, including whatever was happening before,” he said. “It tempts them but you’re happy with that if you’re handing money out to your friends.”

TikTok creators, business owners and advertising firms have watched the ongoing saga closely as threats of the application shutting down in America have persisted for five years.

“Everybody will be very happy that the deal is done and things are settling in a final state,” Evan Horowitz, co-founder and CEO of Movers+Shakers, a marketing agency focused on social media, told UPI. “It’s been five years now that TikTok has been in this state of uncertainty and that’s been stressful for people. That’s been stressful for brand assessment, stressful for creators, stressful for consumers, because there’s this constant threat of TikTok going away.”

As Horowitz expresses relief, he remains concerned about whether the application will remain largely as it is.

“The algorithm is the number one key to TikTok’s success,” he said. “So what happens to the algorithm and how they’re able to port that or share that is going to be critical for the long-term viability of TikTok.”

The makeup of the new board also raises questions.

“One of the keys to TikTok’s success is that it’s an open and inclusive platform and that has attracted a very wide and diverse audience over the years,” Horowitz said. “If in the future it seems like TikTok will not be inclusive and open to all people and viewpoints that would present a major challenge for the community.”

As Horowitz’s company has navigated the years of uncertainty around TikTok, he said he has encouraged clients to stay focused on what is known rather than unknown. In the meantime he has monitored alternatives to the platform as social media platforms tend to come and go over time.

“Our expectation is if TikTok were either to vanish or dwindle gradually, the winners are going to be Instagram Reels and YouTube Shorts,” he said. “They’re still not quite as good and the audience is not as robust but if people start being dissatisfied with TikTok for any reason, they’re going to be moving to Reels and Shorts.”