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President Donald Trump has signed an executive order approving a multibillion-dollar plan that transfers control of TikTok’s US operations from a Chinese company to a group of American investors.
Some shit you should know before you dig in: Last year, Congress passed the “Protecting Americans from Foreign Adversary Controlled Applications Act” with bipartisan support over widespread concerns about the potential national security risks posed by TikTok’s Chinese ownership. The law, later signed by President Biden, required TikTok’s parent company, ByteDance, to either divest its US operations or face an outright ban, based on fears that the Chinese government could exploit the platform’s algorithm to manipulate information and access sensitive user data from millions of Americans. Since Trump returned to office, he has extended the ban’s deadline, citing ongoing talks with China to reach a resolution on the matter.
Getting into it: Trump’s executive order lays out a 120-day timeline for ByteDance, TikTok’s Chinese parent company, to divest its US operations, creating a new American-controlled entity that meets the requirements of a 2024 national security law. Under the plan, a joint venture will be established, with US-based investors taking majority ownership to ensure that TikTok continues operating in the US without risking a federal ban. The transaction, valued at approximately $14 billion, is structured to reduce ByteDance’s stake to less than 20%, in line with the legal threshold for foreign ownership in sensitive tech platforms.
The companies involved in the deal include Oracle, which will oversee TikTok’s data security and cloud infrastructure; private equity firm Silver Lake; and Abu Dhabi-based AI investment firm MGX. Together, these three firms are expected to hold roughly 45–50% of the new TikTok US entity. ByteDance’s existing US investors (General Atlantic and KKR) are also expected to retain indirect stakes, bringing the combined non-Chinese ownership share to a clear majority.
Control over TikTok’s highly sensitive recommendation algorithm (central to its user engagement and data practices) will rest with the new US entity, though exact technical arrangements remain unclear. According to the executive order, the algorithm will be “retrained” under American oversight and monitored by security partners, with Oracle playing a lead role in safeguarding its operations. A new seven-member board will govern the company, with six members being American and one appointed by ByteDance.
Trump has said that the deal will create a fully American-operated version of TikTok, stating that it will be “owned by Americans, and very sophisticated Americans,” while also emphasizing that all user data will be stored and managed within US bord
