TikTok’s U.S. future just took a major turn. President Donald Trump has signed an executive order that greenlights a plan for an American investor group to take control of TikTok’s U.S. operations, keeping the app available to American users. According to Vice President JD Vance, the deal values TikTok U.S. at around $14 billion.
The move pauses enforcement of a previously passed national security law that required TikTok’s U.S. divestiture or a nationwide ban. Under the new order, the Department of Justice is barred from enforcing that law for 120 days while the administration’s approved divestiture plan is carried out.
ByteDance, TikTok’s parent company, has not publicly confirmed the agreement or the order. However, in a statement issued on September 19, the company said it would follow applicable laws to ensure TikTok remains available to U.S. users through TikTok U.S.
Trump said he spoke with China’s President Xi Jinping and received his approval to proceed. “I spoke with President Xi; we had a good talk. I told him what we were doing, and he said, ‘Go ahead with it,’” Trump told reporters.
Under the executive order, TikTok’s U.S. operations will form a new board of directors. Crucially, the app’s recommendation algorithm, source code, and content moderation systems in the United States will come under the full control of the new U.S. ownership group. Oracle will oversee security operations and provide computing services for TikTok U.S., a key component of the arrangement. “It’s owned by Americans, and very sophisticated Americans,” Trump said. “This is going to be American operated all the way.”
While Trump confirmed Oracle as one of the investors, he did not disclose the full roster of owners. Reporting indicates that Oracle, Silver Lake, and Abu Dhabi-based MGX are expected to collectively take a 45% stake in the U.S. entity.
Vice President Vance framed the deal as a win for user safety and transparency: “This deal really does mean Americans can use TikTok but actually use it with more confidence than they had in the past because their data is secure and it won’t be used as a propaganda weapon like it has in the past.” Addressing concerns about political bias on the platform, Trump added that “every group, every philosophy, every policy will be treated fairly,” when asked whether the algorithm would surface more MAGA-related content after the transition.
The latest order follows a series of deadline extensions for ByteDance to complete its U.S. divestiture, marking the fourth such extension. Efforts to restrict or force changes to TikTok’s ownership began in 2020 and later gained bipartisan support during the following administration.
What this means for users:
– TikTok remains available in the U.S. while the divestiture is finalized within a 120-day window.
– A new U.S.-controlled board, algorithm oversight, and data security framework aim to address national security and privacy concerns.
– Oracle’s role focuses on safeguarding data and providing the infrastructure behind TikTok U.S.
– Valuation for the U.S. business is estimated at roughly $14 billion, with a sizable minority stake attributed to the investor group named in recent reports.
Bottom line: The executive order sets a clear path for TikTok to stay in the U.S. under American control, with heightened data protections, new ownership oversight, and a timeline designed to satisfy national security requirements while minimizing disruption for users.
