President Donald Trump has signed an executive order formalizing a long-awaited deal to bring TikTok’s U.S. operations under American control, resolving months of uncertainty over the app’s future in the country. The move follows a law signed by former President Joe Biden in 2024 requiring TikTok’s Chinese parent company, ByteDance, to divest its U.S. business or face a nationwide ban.
Under the terms of the deal, TikTok’s U.S. operations will be spun off into a new joint venture, majority-owned by U.S.-based investors. ByteDance will retain less than 20% of the new entity, in compliance with national security legislation. The new company will be governed by a board composed entirely of Americans, with ByteDance allowed to appoint only one of seven directors. ByteDance will also be excluded from the company’s security committee.
The ownership group includes major U.S. investors such as Oracle, Silver Lake, and MGX, who will collectively hold a 45% stake. Additional equity will be contributed by ByteDance’s existing American investors, including General Atlantic, Susquehanna, and Sequoia Capital, bringing the total U.S. ownership to over 80%.
Vice President JD Vance stated that the new TikTok entity is valued at $14 billion, a figure that has sparked debate among analysts who believe the valuation significantly underrepresents the platform’s true market potential.
Oracle will serve as the security provider for the new TikTok U.S. entity, overseeing the app’s algorithm, data flows, and content moderation systems. All U.S. user data will be stored in a secure cloud environment operated by Oracle, and the algorithm will be retrained and monitored to ensure it is free from foreign influence or manipulation.
This arrangement addresses longstanding concerns from lawmakers about the potential for ByteDance to misuse U.S. user data or manipulate content. Oracle’s oversight is intended to act as a “firewall” between TikTok’s U.S. operations and its Chinese origins.
Trump’s executive order extends the enforcement deadline of the original ban law by 120 days, giving stakeholders time to finalize the divestiture. The president emphasized that the deal protects national security while preserving TikTok’s economic value for the 170 million American users who rely on the platform for entertainment, business, and income generation.
Trump also confirmed that Rupert Murdoch, Lachlan Murdoch, and Michael Dell are among the investors involved in the deal. He described the new ownership group as “very sophisticated Americans” and assured that the platform would be “American-operated all the way”.
While ByteDance has not publicly acknowledged the transaction, Trump stated that Chinese President Xi Jinping has given the deal his approval. However, regulatory reviews in both the U.S. and China are still pending.
