Trump approves $14 billion TikTok deal, clearing path for US ownership

US President Donald Trump on Thursday, 25 September, signed an executive order approving a landmark deal that allows TikTok to continue operating in the United States under majority American ownership.

The agreement, which vice-president J.D. Vance said values the US business at around $14 billion, is intended to address long-standing national security concerns over the app’s Chinese parent company, ByteDance.

The executive order confirms that the transaction meets the “qualified divestiture” standards set by Congress, ensuring that TikTok is no longer under the control of a foreign adversary. The move follows a law passed last year requiring ByteDance to sell TikTok’s US operations or face a nationwide ban.

Under the proposed structure, a new joint-venture company will oversee TikTok’s American business, with ByteDance retaining a stake of less than 20 per cent.

A consortium led by Oracle, private equity firm Silver Lake and Abu Dhabi-based MGX will hold roughly 45 per cent, while existing ByteDance investors and new backers will control the remaining 35 per cent, according to reports.

Oracle is expected to manage the platform’s security operations and provide cloud computing services for the new entity.

Speaking at the signing, Mr Trump said the arrangement had “good controls” on safety and security and stressed that the app would be “American operated all the way”.

He credited Oracle co-founder Larry Ellison as playing “a very big part” in the ownership group and suggested that media magnate Rupert Murdoch and Dell Technologies chief executive Michael Dell could also be involved.

TikTok, which has around 170 million U.S. users, has been at the centre of a geopolitical tug-of-war between Washington and Beijing, amid fears that the Chinese government could use the app to collect data on Americans or spread disinformation.

ByteDance was valued at roughly $330 billion last month, with analysts estimating TikTok’s US arm alone could be worth between $30 billion and $35 billion.

President Trump said Chinese President Xi Jinping had given the deal the go-ahead after a “very good talk” last week, though Vice President Vance acknowledged there had been “some resistance on the Chinese side”.

China’s government must still formally approve the transaction, and ByteDance has yet to publicly confirm the arrangement.

The Protecting Americans from Foreign Adversary Controlled Applications Act, signed into law in April 2024, underpins the deal by mandating that apps controlled by foreign adversaries be sold or banned.

The agreement marks a sharp turnaround for Trump, who previously sought to shut TikTok down during his first term but now credits the platform with helping him connect with younger voters ahead of his return to the White House.

The executive order also extends the deadline for ByteDance to finalise the divestment until 16 December and temporarily prevents the Justice Department from enforcing the national security law.

While the U.S. government will not take an equity stake in the new company, Mr Vance said the arrangement ensures that American investors will control TikTok’s algorithm, a key safeguard against foreign influence.

The deal represents a rare moment of co-operation in the broader U.S.–China power struggle over technology, trade and data privacy, but its completion ultimately hinges on Beijing’s approval.