Trump Approves $14B TikTok Deal, Cedes 80% to US Investors
▼ Summary
– President Trump signed an executive order enabling a deal where U.S. investors will own 80% of TikTok’s U.S. operations, valuing the entity at approximately $14 billion.
– The agreement reduces Chinese parent company ByteDance’s ownership to 19.9%, complying with a U.S. law that bans apps if they are more than 20% owned by a “foreign adversary.”
– Key investors reportedly include Oracle, Larry Ellison, Michael Dell, and Rupert Murdoch, though the final ownership group has not been officially confirmed.
– The deal still requires approval from Chinese regulators, and the final terms are pending, but it aims to keep TikTok available in the U.S. with enhanced data security protections.
– The executive order delays enforcement of the divest-or-ban law for 120 days, extending the deadline to January 23, 2026, to allow the transaction to be finalized.
The future of TikTok in the United States has been secured following President Donald Trump’s approval of a landmark $14 billion deal that transfers majority ownership to a consortium of American investors. In a significant move aimed at addressing national security concerns, the President signed an executive order on Thursday that paves the way for U.S. investors to acquire an 80% stake in the popular video-sharing app’s domestic operations.
Speaking from the Oval Office, Trump confirmed the development, stating, “American investors are taking it over.” He emphasized the widespread support for the resolution, noting, “The young people, they really wanted this to happen.” While the complete list of investors is not yet finalized, the President mentioned that Oracle’s Larry Ellison, tech mogul Michael Dell, and media titan Rupert Murdoch are among the key figures involved.
Vice President JD Vance, who was present for the signing, revealed the deal values the U.S. operations of TikTok at approximately $14 billion. He stressed that the primary objective was to ensure the app remains accessible to Americans while implementing robust safeguards for user data. “Americans can use TikTok but use it with more confidence than they had in the past,” Vance commented, adding a crucial assurance that the platform “won’t be used as a propaganda” tool. The White House echoed this sentiment on social media, framing the agreement as a measure that protects national security by removing TikTok from Chinese control.
This arrangement drastically reduces the ownership stake of Chinese parent company ByteDance to 19.9%, aligning with the U.S. “divest-or-ban” law enacted in January 2025. That legislation prohibits the distribution of any app in the U.S. that is more than 20% owned by a “foreign adversary.” Reports indicate that Oracle, private-equity firm Silver Lake, and Abu Dhabi’s MGX will be the primary owners, collectively holding a 45% stake. Existing ByteDance investors like Susquehanna International, KKR, and General Atlantic are also expected to participate in the new ownership group.
A critical component of the deal involves ByteDance licensing TikTok’s content-recommendation algorithm to the newly formed U.S. entity, which will operate the technology independently from its Chinese counterpart. This separation is vital to comply with the U.S. law, which expressly forbids an “operational relationship” with a foreign adversary. The executive order mandates “intense monitoring of software updates, algorithms, and data flows by the United States’ trusted security partners.”
While President Trump stated that Chinese President Xi Jinping has agreed to the deal in principle, the final terms still require official approval from Chinese regulators. The agreement also encompasses other ByteDance applications, including Lemon8 and CapCut. To facilitate the complex transition, the executive order grants a 120-day grace period from enforcement of the divest-or-ban law, extending the deadline to January 23, 2026. This marks the fourth delay in enforcing the legislation, which was originally signed by President Biden amid bipartisan concerns over potential data privacy risks and foreign influence.
(Source: Variety)
