Trump signs executive order to advance TikTok US sale, but the deal isn’t finalized yet. Read the latest on Oracle, ByteDance, and US regulatory approvals.
Table of Contents
Trump Signs Executive Order on TikTok US Deal
Introduction
President Donald Trump signed an executive order Thursday clearing the path for the sale of TikTok’s U.S. assets to a consortium of mostly American investors. While the move represents a major procedural step, the deal is not yet complete, as regulatory approvals in both the U.S. and China are still pending.
Trump expressed confidence the deal would be finalized, claiming that Chinese President Xi Jinping has green-lit the transaction—though Beijing has not publicly confirmed this. The deal, when complete, will allow 170 million American TikTok users to continue using the platform while transferring majority control to U.S.-based investors.
Key Details of the TikTok US Deal
Executive Order and Regulatory Pause
- Trump’s executive order qualifies as a divestiture under the 2024 ban-or-sale law, requiring ByteDance to sell ~80% of U.S. assets to non-Chinese investors.
- Enforcement of the law is expected to be paused for another 120 days, allowing for regulatory approvals and paperwork to be finalized.
- Platforms included in the deal: TikTok, Lemon8, and CapCut.
Investors and Ownership Structure
- The U.S. joint venture will include majority American investors such as Oracle, possibly Silver Lake, Dell CEO Michael Dell, and Lachlan Murdoch’s Fox Corp.
- ByteDance is expected to retain a stake of no more than 20%.
- Oracle will oversee TikTok’s algorithm, data security, and privacy.
Algorithm and Chinese Compliance
- The deal must comply with Chinese export controls on TikTok’s algorithm.
- ByteDance may license the algorithm to the U.S. joint venture after obtaining export approval from Beijing.
Deal Valuation
- Vice President JD Vance estimated the U.S.-based venture at $14 billion.
- Previous valuations for TikTok’s U.S. assets ranged from $20 billion to $100 billion, depending on algorithm access.
Remaining Questions and Challenges
- Whether Americans will need a separate U.S. TikTok app after the sale.
- Concerns over algorithm control, especially with investors linked to Trump allies.
- Analysts warn China may use TikTok as a bargaining chip in broader trade negotiations.
- The deal sets the stage for Trump’s first in-person meeting with Xi Jinping since returning to office, expected at the APEC Summit in South Korea.
FAQs
Q1: Has the TikTok U.S. deal been finalized?
A1: No. Trump’s executive order clears a procedural step, but the deal requires regulatory approval from both U.S. and Chinese authorities.
Q2: Who will control TikTok’s U.S. operations?
A2: A majority American investor group, including Oracle and possibly Silver Lake, Dell, and Fox Corp, will manage TikTok’s U.S. operations.
Q3: What is ByteDance’s stake after the deal?
A3: ByteDance is expected to retain up to 20% ownership, ensuring compliance with U.S. divestiture requirements.
Q4: Will TikTok users see changes to the app?
A4: The platform is expected to remain accessible for 170 million U.S. users, but details like whether a separate U.S. app will be required remain unclear.
Q5: Why is the algorithm a concern in the deal?
A5: TikTok’s algorithm is under Chinese export controls, and transferring it to U.S. investors requires Beijing’s approval to ensure compliance with Chinese laws.
Conclusion
Trump’s executive order represents a major step toward U.S. control over TikTok, addressing national security concerns and investor oversight. While the deal is still pending regulatory approval, it highlights the interplay between tech, geopolitics, and U.S.-China relations.
The transaction, if completed, will allow millions of Americans to use TikTok safely under majority U.S. ownership, while maintaining global ties and protecting sensitive data.
👉 Stay updated on this evolving story and how it may affect social media users, investors, and U.S.-China trade relations.