In a dramatic turn in the ongoing saga over TikTok’s operation in the US, former President Donald Trump on Thursday (September 25, 2025) signed an executive order approving a landmark deal that endorses a structure for the divestiture of TikTok’s U.S. business from its Chinese parent company, ByteDance. The move comes after a month of legal, political, and diplomatic steering over national security concerns, data privacy of users, and platform control.
“It’s owned by Americans, and very sophisticated Americans,” Trump said at the signing. “This is going to be American operated all the way.”
With the order, the sale, long viewed as a necessary step to preserve TikTok’s presence in the U.S., gains renewed urgency and momentum. But many details remain unresolved, and critics—both inside and outside government—are already raising questions about how deep the “break” from Chinese influence will truly be.
Snapshot Table
| Entity | Ownership Stake | Role/Responsibility |
| Oracle | 25% | Oversee algorithm and data privacy |
| Silver lake | 25% | Investment and strategic oversight |
| MFX (Abu Dhabi) | 15% | Investment and board representation |
| ByteDance | <20% | Limited involvement in compliance with U.S. law |
| Susquehanna, General Atlantic, KKR | 30% | Retail shares, strategic input |
TikTok Sale Gains Momentum: What Happened
The Legal and Political Backdrop
In April 2024, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA). That law, effective immediately, required that any application deemed to be “controlled” by a foreign adversary (in practice, ByteDance and TikTok) must be divested within a set period or be banned in the U.S.
“TikTok’s U.S. operations will be valued at $14 billion, according to U.S. Vice President JD Vance.”
TikTok challenged the law, and courts heard cases such as TikTok, Inc. v. Garland. Meanwhile, enforcement was delayed multiple times via executive orders.
These delays were intended to give negotiators space to broker a “qualified divestiture”—one that would sever “operational relationships” between ByteDance and the U.S. TikTok, particularly around algorithm access, data flows, and content moderation.
The Deal’s Structure
The agreement values TikTok U.S. at approximately $14 billion. A group of investors, including Oracle, private equity firm Silver Lake, and Abu Dhabi-based MGX, is set to acquire about 50% of the stake in the company. Existing shareholders in ByteDance and new holders will retain approximately 30%, while ByteDance itself will hold less than 20% to comply with U.S. regulations.
Under the condition of deals, Oracle will oversee TikTok’s algorithm and data privacy, which ensures that content moderation and the data of users are managed within the US. The new board will consist of 7 members, with six appointed by American investors and one by ByteDance. The agreement also includes a 120-day window to finalize the transaction.
Vice President J.D. Vance (at signing), “There was some resistance on the Chinese side, but the fundamental thing that we wanted to accomplish is that we wanted to keep TikTok operating, but we also wanted to make sure that we protected Americans’ data privacy as required by law.”
Challenges, Risks, and Critics
While the executive order gives the process new impetus, considerable challenges remain:
- Chinese regulatory approval and follow-through
Trump claims Xi Jinping verbally approved the deal. But as of now, Chinese authorities have not publicly confirmed formal consent, and internal opposition could yet slow or reject the transaction.
- Algorithm control and “operational relationship” issues
The algorithm, the core of TikTok’s recommendation engine, is perhaps the most sensitive part of the negotiations. Under U.S. demands, it must be licensed, retrained, and controlled fully by the new entity with no operational ties to ByteDance. Some analysts warn that residual influence or technical interdependencies could compromise a clean separation.
- Congressional and error scrutiny
Lawmakers have indicated they will monitor the finalized deal to ensure it fully addresses foreign influence concerns and national security. A final contract must satisfy not only executive determinations but also skepticism among Republicans and Democrats alike.
- Valuation and equity stakes
The $14 billion valuation is lower than earlier projections of TikTok’s U.S. operations, and questions remain about how much capital will be needed to sustain the platform’s growth and operations.
- Residual Chinese influence & reintegration risks
Even with a minority stake, ByteDance might retain indirect levers of influence (e.g., cross-platform integration, content flows). Chinese media already reports that ByteDance may retain a U.S. “branding, e-commerce, or revenue-sharing” role in the new entity.
Final Thoughts
The signing of the executive order marks a decisive moment in the long-running battle over TikTok’s U.S. future. It gives the sale deal legal cover and tempo, forcing progress during the 120-day window. But the risks are high that securing algorithmic independence, insulating U.S. national security from foreign interference, and satisfying both domestic and international stakeholders.
Whether this deal becomes the conclusive resolution or another in a cord of provisional fixes depends on whether the hard work, engineering separation, regulatory approvals, and political buy-in can be done cleanly. Observers will closely watch whether TikTok in the U.S. finally emerges as an American-controlled platform, or whether new frictions and compromises keep Beijing’s shadow alive.
Frequently Asked Questions
Will TikTok’s algorithm remain tied to ByteDance?
Not according to the proposed deal. Under Trump’s order, ByteDance will license a version of the algorithm that is retrained exclusively on U.S. data, and all future development, operations, and content moderation will be under the control of the new U.S. entity. The aim is to eliminate ongoing operational ties.
How much is TikTok’s U.S. business being valued under the deal?
The valuation currently cited by the White House is $14 billion. That is lower than many previous market estimates, but reflects what the negotiators are working with in the current framework.
