Trump Signs Order for TikTok Sale in the US, Reduces ByteDance Stake Below 20%

US President Donald Trump has signed an executive order allowing American investors to acquire TikTok’s US operations from Chinese owner ByteDance. Valued at approximately $14 billion, the deal comes with strict national security safeguards and reduces ByteDance’s stake in the US entity to under 20%. The move also fulfils Trump’s 2024 campaign promise and aims to ease US-China tensions.

Executive Order and Presidential Statement

Trump signed the order at the White House, confirming that the transaction complies with the 2024 law mandating ByteDance to divest control of TikTok in the US or face a ban. Speaking to reporters in the Oval Office, Trump highlighted his conversation with Chinese President Xi Jinping, saying:

“I had a very good talk with President Xi. We talked about TikTok and other things, but we talked about TikTok, and he gave us the go-ahead.”

The deal will spin off TikTok’s US business into a new company owned mainly by American investors, ensuring ByteDance holds less than 20% under national security rules.

Key Details of the TikTok US Deal

The proposed arrangement has several crucial elements:

• Ownership: The US entity will be majority-owned by American investors, reducing ByteDance’s stake below 20%.

• Data Security: Oracle Corp will securely store US user data in the cloud and oversee the platform’s recommendation algorithm to prevent foreign influence.

• Algorithm Oversight: TikTok’s algorithm will be retrained under Oracle’s supervision, with ongoing monitoring to ensure safe content delivery.

Despite Trump’s endorsement, the deal is still contingent on Chinese government approval. The Chinese Embassy in Washington reiterated that the US must maintain a “fair, open, and non-discriminatory environment” for Chinese investors.

Potential Investors and Board Composition

While the deal structure is largely in place, key aspects remain under negotiation:

• Investor Group: Oracle, Silver Lake Management LLC, and Abu Dhabi-based MGX are reportedly in discussions to invest in TikTok US and secure board representation.

• Valuation: US Vice President JD Vance stated that the new US venture is estimated to be worth around $14 billion, with final investment decisions left to the investors.

Trump’s order gives parties 120 days to close the deal, marking the fifth extension of the original deadline. The transaction is now expected to be finalized by January, nearly a year after the law was enacted.

Algorithm and Content Management

Under the terms of the deal, the US-based TikTok entity will lease a copy of ByteDance’s algorithm, which will be retrained entirely under Oracle’s supervision.

• Oracle will review and monitor the retrained system to prevent malicious use.

• The oversight aims to ensure content delivery is secure and free from foreign influence, addressing previous US concerns over national security.

This step is crucial for maintaining user trust and protecting sensitive data for millions of American users.

Background: Legal Context and Biden Administration

The legal framework for the deal stems from a bipartisan law signed by former President Joe Biden, requiring TikTok to sell its US business or face a nationwide ban over data security concerns.

• ByteDance initially challenged the law in court but received temporary relief when Trump took office in 2024.

• Trump requested the Supreme Court to pause the ban, allowing ByteDance time to find an American buyer for TikTok US.

This executive order is the culmination of that process, balancing regulatory compliance, national security, and international diplomacy.

Implications for US-China Relations and Users

The TikTok US sale represents a significant move in US-China tech relations, potentially easing tensions while maintaining oversight of a major social media platform.

For users, the transaction promises:

• Continued access to TikTok without disruption

• Enhanced protection of personal data

• Assurance that content algorithms are monitored for security and transparency

Conclusion

Trump’s executive order to approve the TikTok US sale marks a historic step in American tech regulation, reducing ByteDance’s stake below 20% and safeguarding user data. With Oracle overseeing algorithm retraining and American investors taking control, the platform is poised to continue operations securely while meeting US national security standards.