In a dramatic reversal of policy, President Donald Trump has signed an executive order approving the $14 billion TikTok deal that will keep the popular social media platform operating in the United States. This landmark decision comes after months of uncertainty surrounding TikTok’s future in the American market.
The TikTok Deal Executive Order Details
President Trump’s executive order essentially greenlights the sale of TikTok’s U.S. operations to an American investor group. The agreement values TikTok US at approximately $14 billion according to Vice President JD Vance. Importantly, the order bars enforcement of the national security law that would have banned TikTok for 120 days while the divestiture plan proceeds.
The TikTok deal involves several critical components:
- New ownership structure with American investors taking control
- Oracle oversight of security operations and computing services
- Algorithm transfer of recommendation systems to new owners
- Board restructuring with new American directors
Key Players in the TikTok Agreement
Oracle emerges as a central figure in this TikTok deal, providing critical security oversight and computing infrastructure. According to CNBC reports, Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively acquire a 45 percent stake in TikTok’s US company. President Trump emphasized that “it’s owned by Americans, and very sophisticated Americans” during his briefing.
The TikTok deal received unexpected international backing. President Trump revealed that Chinese President Xi Jinping personally approved the arrangement. “I spoke with President Xi, we had a good talk,” Trump stated. “I told him what we were doing, and he said, ‘Go ahead with it.'”
National Security Implications
This TikTok deal directly addresses longstanding national security concerns about Chinese ownership. Vice President Vance highlighted that “Americans can use TikTok but actually use it with more confidence than they had in the past because their data is secure.” The agreement ensures that TikTok’s algorithm, source code, and content moderation systems will transfer to American control.
The TikTok deal represents the fourth extension granted to ByteDance for divesting its US operations. Trump initially pushed to ban TikTok in 2020, a move that later gained bipartisan support during the Biden administration. This latest development marks a significant compromise solution.
Future Operations Under New Management
Under the TikTok deal terms, American users can expect continued service with enhanced data protection measures. Oracle will oversee security operations while the new ownership structure ensures American control. President Trump assured that “every group, every philosophy, every policy will be treated fairly” regarding content moderation.
ByteDance has not yet publicly acknowledged the specific TikTok deal details. However, the company issued a September 19 statement committing to “work in accordance with applicable laws to ensure TikTok remains available to American users.” This suggests cooperation with the transition process.
FAQs About the TikTok Deal
What does the TikTok deal mean for current users?
The TikTok deal ensures uninterrupted service for American users while implementing enhanced security measures. Users can continue using the platform with greater data protection assurances.
How much is TikTok US valued at in this deal?
Vice President JD Vance stated the TikTok deal values TikTok’s US operations at approximately $14 billion.
Who are the main investors in the TikTok deal?
Oracle, Silver Lake, and Abu Dhabi-based MGX will acquire a 45 percent stake in TikTok’s US company according to reports.
What role will Oracle play in the new TikTok structure?
Oracle will oversee TikTok’s security operations and provide computing services for the US operations under the agreement.
How long does ByteDance have to complete the transition?
The executive order provides a 120-day window for implementing the divestiture plan before enforcement actions could resume.
Will content moderation policies change under new ownership?
President Trump indicated that all content would be treated fairly, though specific moderation changes remain unspecified.
