Trump Clears Path for TikTok’s U.S. Ownership Deal
Executive Order Opens Door for $14 Billion Valuation
President Donald Trump has signed a new executive order that effectively approves the transfer of TikTok’s U.S. operations to an American-led ownership group, ensuring the app’s continued availability in the country. According to Vice President JD Vance, the transaction will value TikTok’s U.S. arm at “around $14 billion.”
The move comes after TikTok faced a national security mandate requiring its American business to be sold or face a ban. That law was originally signed under former President Joe Biden. Trump’s order temporarily blocks the Department of Justice and the Attorney General from enforcing the law for 120 days, giving time for the divestiture plan to be finalized.
ByteDance Response and China’s Role
TikTok’s parent company, ByteDance, has not publicly commented on the deal or the executive order. However, on September 19, the company released a statement affirming that it “will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok U.S.”
Trump also revealed that he had direct discussions with Chinese President Xi Jinping regarding the matter. “I spoke with President Xi; we had a good talk,” Trump told reporters. “I told him what we were doing, and he said, ‘Go ahead with it.’”
Structure of the U.S. Operations
The executive order outlines a restructuring of TikTok’s American operations. Under the terms, TikTok U.S. will establish a new board of directors, and critical systems such as its recommendation algorithm, source code, and moderation tools will be transferred to U.S. ownership.
Oracle will take charge of the platform’s security infrastructure while also providing cloud and computing services for TikTok U.S. “It’s owned by Americans, and very sophisticated Americans,” Trump said, emphasizing the shift to domestic control.
Investors and Stake Distribution
While Trump confirmed Oracle’s participation as an investor, he declined to provide the full ownership breakdown. CNBC reports that Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively hold a 45% stake in TikTok’s U.S. entity.
Vice President Vance stressed that the deal enhances user trust: “This deal really does mean Americans can use TikTok but actually use it with more confidence than they had in the past because their data is secure and it won’t be used as a propaganda weapon like it has in the past.”
Political and Regulatory Background
When asked whether the new algorithm oversight would prioritize political viewpoints, Trump assured reporters that “every group, every philosophy, every policy will be treated fairly.”
This executive order marks the fourth time Trump has extended ByteDance’s deadline to divest TikTok’s U.S. business. The effort to ban or restructure TikTok first began in 2020 during Trump’s presidency, and later gained bipartisan support during the Biden administration.
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