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Washington D.C. — President Donald Trump has officially signed an executive order dictating the terms for a historic transfer of TikTok to American ownership. This landmark agreement aims to sever the popular social media platform’s ties with its Chinese parent company, ByteDance, addressing long-standing national security and data privacy concerns.
The President revealed the deal following discussions with Chinese President Xi Jinping, emphasizing that the arrangement allows TikTok to continue its operations within the United States. This executive order serves as a resolution to a congressional mandate that would have otherwise led to a complete shutdown of the app for American users if not divested to a US entity.
“I spoke with President Xi and he said, ‘Go ahead with it,'” Trump stated during a press conference. “This is going to be American-operated all the way.”
Key Details of the TikTok Divestiture
Under the finalized plan, a consortium of US investors is poised to acquire a dominant 80% ownership stake in the newly formed US version of TikTok. This move includes gaining control over a licensed copy of the app’s powerful recommendation algorithm. ByteDance and its Chinese investors will retain less than 20% ownership in the spun-off company.
The White House has confirmed that the new US entity will be governed by a seven-member board of directors, comprising cybersecurity and national security experts. Crucially, six of these directors will be American, reinforcing the commitment to US oversight.
The new American TikTok company is valued at $14 billion, according to JD Vance, who also spoke at the press event. This figure starkly contrasts with ByteDance’s overall estimated valuation of approximately $330 billion, and Meta’s (Facebook, Instagram owner) $1.8 trillion market capitalization.
Oracle Leads Investor Group, Data Security Prioritized
The group of American investors spearheading this acquisition is led by US software titan Oracle. Oracle will assume responsibility for TikTok’s US operations, providing essential cloud services for user data storage and obtaining the critical license to manage the app’s algorithm. White House officials have provided strong assurances that ByteDance and Chinese authorities will no longer have access to US user data.
In addition to Oracle and its co-founder Larry Ellison, President Trump confirmed the involvement of other prominent investors, including media mogul Rupert Murdoch and Dell computers CEO Michael Dell. Trump lauded the caliber of these investors, remarking, “Great investors. The biggest. They don’t get bigger.” Further specifics regarding the deal participants are expected to be unveiled in the coming days.
Political Implications and Regulatory Landscape
When questioned about potential political biases, specifically if TikTok might prioritize “Maga-related content,” Trump responded, “I always like Maga-related. If I could, I’d make it 100% Maga-related.” However, he quickly indicated the platform would maintain its diverse content recommendations, affirming that “Every group will be treated fairly.”
This agreement concludes months of uncertainty for one of America’s most widely used applications, which boasts approximately 180 million users nationwide. Trump has previously credited TikTok with contributing to his 2024 presidential election victory. The deal also signifies another instance of the Trump administration’s expanding influence over the tech sector, following its recent 10% stake in chipmaker Intel and calls for companies like Apple and Nvidia to increase domestic investments.
Earlier, Trump had hinted at the US government receiving a significant “fee-plus” for brokering the deal. However, on Thursday, he clarified that the US would primarily benefit from ordinary taxes levied on the new company, stating, “We’re gonna make money and we’re going to get a lot of money in taxes.”
The journey to this divestiture was marked by bipartisan concerns from lawmakers over potential Chinese propaganda dissemination or threats to US democracy via the app. Despite TikTok’s repeated denials, Congress overwhelmingly passed legislation last year compelling ByteDance to find a US buyer or face a nationwide ban. The Supreme Court upheld this ban unanimously in January. Upon taking office, Trump initially postponed the ban’s enforcement, but this new “Saving TikTok” executive order officially declares the deal compliant with existing law, qualifying it as a “divestiture” that “resolves” national security concerns. The full divestiture from ByteDance is anticipated to be finalized within 120 days.
During the press conference, Trump also acknowledged the role of “young people” in advocating for TikTok’s continuation and credited the late conservative activist Charlie Kirk for encouraging him to join the platform. “Charlie helped me a lot too. He said, ‘You should go on TikTok,’” Trump recalled.
The groundwork for this agreement was laid last week when US Treasury Secretary Scott Bessent and China’s top trade negotiator Li Chengang confirmed a framework deal following high-level talks in Madrid. While Trump had alluded to a forthcoming deal via Truth Social, promising “young people… will be very happy!”, specific details remained under wraps until today’s official announcement.