Published: September 29, 2025
President Donald Trump has officially signed an executive order approving a landmark deal that will transfer control of TikTok’s US operations to American investors, effectively ending months of uncertainty over the popular social media platform’s future in the United States.
The Deal Structure
The agreement, valued at $14 billion according to Vice President JD Vance, establishes a new joint venture that will control TikTok’s US assets while reducing Chinese parent company ByteDance’s ownership to just 19.9%. This carefully structured ownership percentage ensures compliance with US federal law, which prohibits foreign adversaries from owning more than 20% of such platforms. 
The new ownership structure breaks down as follows:
- 45% stake: Controlled by a consortium of US investors led by Oracle, Silver Lake, and Abu Dhabi’s MGX investment fund
- 35% stake: Held by existing ByteDance investors and new holders
- 19.9% stake: Retained by ByteDance to remain compliant with US law
Key Players in the Deal
Enterprise technology giant Oracle will play a central role in the new arrangement, with the company set to manage security operations and oversee the app’s algorithm to prevent any potential Chinese influence. Oracle’s founder Larry Ellison, a known Trump supporter, has been instrumental in facilitating this deal.
Other notable investors mentioned by Trump include media moguls Rupert and Lachlan Murdoch, who control Fox News, The New York Post, and The Wall Street Journal. Additionally, Dell Technologies CEO Michael Dell has been identified as part of the investor group.
National Security Concerns Addressed
The primary motivation behind this deal stems from longstanding national security concerns about TikTok’s Chinese ownership, with fears that the platform could be used for surveillance or content manipulation by the Chinese government. While no public evidence has emerged of such activities, these concerns were sufficient to motivate Congress to pass bipartisan legislation requiring ByteDance to divest or face a ban.
Under the new arrangement, Oracle will provide “intense monitoring of software updates, algorithms, and data flows” with US security partners, and all recommendation models using US user data will be “retrained and monitored by trusted security partners”.
Government Revenue Component
The Trump administration has requested that the US investor group make a payment to the federal government “in the low billions” as part of the deal terms. This unusual requirement has drawn criticism from some experts who characterize it as a form of government extraction.
Chinese Approval and Algorithm Licensing
Trump stated that Chinese President Xi Jinping has given approval for the deal, though formal Chinese regulatory approval is still pending. ByteDance will license its content-recommendation algorithm to the US entity, which will operate it separately from the Chinese-controlled version.
Timeline and Implementation
The executive order sets a 120-day period for the divestiture to take place, with enforcement of the original ban law postponed until December 16 to allow time for implementation.
The new joint venture will be governed by a majority-US board of directors, with ByteDance appointing only one of seven board members.
Market Impact and Valuation
The $14 billion valuation announced by the Trump administration has surprised some investors, as it falls well below previous estimates that ranged closer to $40 billion for TikTok’s US operations. ByteDance itself was reportedly valued at $330 billion last month.
Broader Implications
This deal represents a significant shift in how the US government approaches foreign-owned technology platforms operating within American borders. With over 170 million American users, TikTok has become a major cultural force, particularly among younger demographics.
The agreement also highlights the complex intersection of national security, technology, and business interests in an increasingly digital world. Oracle’s expanded role in the deal extends the Ellison family’s media influence, as Larry Ellison’s son David recently acquired Paramount and is exploring other media acquisitions.
Looking Forward
While the framework has been established, several key details remain to be finalized, including formal Chinese regulatory approval and the complete investor lineup. The White House has indicated that additional details about the full investor group will be revealed in the coming days or weeks.
This landmark deal sets a precedent for how similar technology divestiture cases might be handled in the future, balancing national security concerns with the practical realities of operating popular digital platforms in a globalized economy.
Sources:
- NPR: Trump’s TikTok deal payment criticized as ‘shakedown scheme’ by experts
- CNN Business: We now know who the new owners of TikTok will be
- NPR: Trump signs order clearing way for takeover of U.S. version of app
- ABC News: Trump announces deal to put TikTok under control of US investors
- Variety: Trump Signs Order Approving TikTok U.S. Deal
- CNBC: Oracle, Silver Lake and MGX will be main investors in TikTok U.S.
