Trump Approves TikTok Sale to U.S. Investors, Ensuring Continued Operation

U.S.President Donald Trump signed an executive order on Thursday, approving a deal to sell TikTok's U.S. operations to a group of American and global investors. The agreement ensures the popular short-video platform, owned by Chinese company ByteDance, complies with a 2024 U.S. law requiring its divestiture to avoid a nationwide ban.

The new U.S.-based company, valued at approximately $14 billion according to Vice President JD Vance, will operate TikTok’s American business. ByteDance’s stake in the venture will be reduced to 19.9%, with major U.S. investors, including Oracle, Silver Lake, and Abu Dhabi’s MGX, controlling about 45% of the shares. The remaining 35% will be held by ByteDance’s existing investors and new shareholders.

Under the agreement, TikTok’s U.S. user data will be stored domestically and overseen by Oracle, a leading U.S. software company. The platform’s algorithm will be retrained and continuously monitored to prevent external manipulation, ensuring content delivered to U.S. users remains free from foreign influence. “This is going to be American-operated all the way,” Trump emphasized during a White House briefing.

Trump highlighted the involvement of prominent investors, including Oracle founder Larry Ellison, Dell Technologies CEO Michael Dell, and media mogul Rupert Murdoch. He credited TikTok, which boasts 170 million U.S. users, with contributing to his reelection victory last year, noting his personal account’s 15 million followers. The White House also launched an official TikTok account in August.

Vice President Vance addressed concerns about data privacy, stating, “We wanted to keep TikTok operating, but we also wanted to make sure we protected Americans’ data privacy as required by law.” He confirmed that the new U.S. company will control TikTok’s algorithm, ensuring no influence from its Chinese parent company. “Americans will be able to use TikTok with greater confidence, knowing their personal data won’t be shared with China,” Vance added.

Trump revealed he discussed the deal with Chinese President Xi Jinping, who expressed no objections. However, the Chinese embassy in Washington has not yet commented on the matter, and TikTok has also withheld immediate comment.

The executive order delays enforcement of the 2024 law, which mandated TikTok’s sale or ban, until December 16 to finalize the transaction. Republican lawmakers, including Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson, have called for transparency to ensure the deal fully severs ties with Chinese influence and protects U.S. users from potential surveillance.

The agreement marks a significant step toward securing TikTok’s future in the U.S., balancing national security concerns with the platform’s widespread popularity among American users.