President Donald Trump has signed an executive order approving the sale of TikTok’s U.S. operations to a consortium of American investors, a move designed to ensure the social media app remains accessible in the United States. According to Vice President JD Vance, the deal values TikTok U.S. at approximately $14 billion.
The order effectively delays enforcement of a national security law, originally enacted under former President Joe Biden, that required TikTok to divest its U.S. business or face a nationwide ban. Under Trump’s directive, the Department of Justice and attorney general are barred from acting on the law for 120 days while the divestiture plan is carried out.
ByteDance, TikTok’s Chinese parent company, has not publicly confirmed the agreement but issued a statement on September 19 pledging compliance with applicable laws to keep TikTok available in the U.S. Trump added that Chinese President Xi Jinping approved the move, saying, “I told him what we were doing, and he said, ‘Go ahead with it.’”
As part of the deal, TikTok U.S. will establish a new board of directors and transfer control of its recommendation algorithm, source code, and content moderation system to its new American owners. Oracle will oversee TikTok’s security operations and provide cloud infrastructure services.
“It’s owned by Americans, and very sophisticated Americans,” Trump told reporters. “This is going to be American operated all the way.”
Reports indicate Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively take a 45% stake in TikTok U.S. Trump did not disclose the full list of new owners.
Vance emphasized that the arrangement strengthens security and 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.”
Related: TikTok U.S. Ownership Deal Advances as Oracle, Investors Step In
The development follows years of bipartisan scrutiny of TikTok’s ties to China. Trump first pursued a ban in 2020, and Biden’s administration continued to push for divestiture over national security concerns. This week’s executive order marks the fourth extension of ByteDance’s deadline to finalize a U.S. sale.
