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President Donald Trump on Thursday signed an executive order approving a proposed deal that will keep TikTok operating in the U.S. while addressing national security concerns. Vice President JD Vance announced that the transaction values the company's U.S. business at $14 billion, well below some analyst expectations.
The agreement requires China-based ByteDance to sell TikTok's U.S. operations or face a nationwide ban. Under the deal, which still needs Beijing's approval, a new joint-venture company will oversee TikTok's U.S. operations. ByteDance will retain less than 20% ownership, complying with a 2024 law aimed at preventing foreign control over sensitive tech platforms.
Enterprise technology giant Oracle, along with private-equity firm Silver Lake and Abu Dhabi-based MGX, will hold about 45% of the new company. Existing ByteDance investors, including Susquehanna International Group and General Atlantic, will own roughly 35%.
Trump said he personally spoke with Chinese President Xi Jinping, who ultimately approved the deal after initial resistance. "I told him what we were doing, and he said, 'go ahead with it,'" Trump said at the signing ceremony.
Oracle will manage TikTok's data security operations and continue providing cloud services, ensuring U.S. user data stays on American soil. Trump praised Oracle CEO Larry Ellison as a "key player" in the deal and confirmed other high-profile investors, including ↳Rupert Murdoch and Michael Dell, are involved. "This is going to be American-operated all the way," Trump declared, emphasizing that U.S. companies will control TikTok's U.S. business and its critical recommendation algorithm.
ByteDance, which was valued at $330 billion last month, has not publicly commented on the transaction. Analysts previously estimated TikTok's U.S. operations could be worth $30 to $35 billion, far higher than the deal's current valuation.The new entity will have a seven-member board, with six American appointees and one selected by ByteDance. The federal government will not take an equity stake or a "golden share."
The executive order delays enforcement of the national security law until December 16, giving the new company time to finalize operations. Failure to meet these terms would have led to app store bans and penalties for service providers hosting TikTok in the U.S. "This is about protecting Americans' data while keeping TikTok alive," Vance said, calling the agreement a "win for innovation and national security."
