President Donald Trump announced on Thursday that an agreement has been reached to transfer control of TikTok to a group of U.S. investors. This decision comes after months of uncertainty surrounding a potential ban on the popular social media app, which is owned by the Chinese company ByteDance.

Trump's announcement follows a series of delays regarding the ban, which was initially set to take effect at the beginning of this year. The deal aims to address national security concerns related to TikTok's algorithm, which has been under scrutiny for its potential influence and data collection practices.

During the announcement in the Oval Office, Vice President J.D. Vance stated that the agreement would ensure the algorithm is "under the control of American investors." He emphasized that this deal would allow Americans to use TikTok with greater confidence, knowing their data would be secure and not used for propaganda.

The U.S.-based version of TikTok is expected to be valued at $14 billion. Trump mentioned that Chinese President Xi Jinping has approved the deal, although as of Thursday afternoon, China had not publicly confirmed this information.

The group of investors includes tech giant Oracle, along with private equity firm Silver Lake and the UAE state-owned investment firm MGX, which will collectively hold a 45% stake in TikTok U.S. Reports indicate that ByteDance will retain less than 20% ownership, while existing shareholders and global firms will account for the remaining shares.

This agreement follows legislation signed by President Joe Biden last year, which mandated that ByteDance divest TikTok's assets to an American company or face a nationwide ban. The Protecting Americans from Foreign Adversary Controlled Applications Act requires apps like TikTok to be restricted unless they are no longer under the control of foreign adversaries, such as the Chinese Communist Party.

Despite the legal challenges TikTok faced, including a failed First Amendment lawsuit, the app temporarily became unavailable in January. However, the Trump administration assured app store owners that law enforcement would not pursue potential violations of the law.

As the situation develops, further details about the agreement and its implications for TikTok users in the U.S. are expected to be released in the coming days.