TikTok has narrowly avoided a ban in the United States after former President Donald Trump approved a $14 billion deal granting majority control of the app’s American operations to US-based investors. This decision, formalized through an executive order on Thursday, represents a significant change in TikTok’s ownership framework, diminishing the influence of Chinese parent company ByteDance while addressing persistent national security concerns. Reports indicate that the newly established entity will be supported by a consortium of investors led by Oracle, Silver Lake, and Abu Dhabi’s MGX fund, together controlling about 45 percent of TikTok’s US operations.
Another 35 percent will be allocated among ByteDance’s current international investors and new American stakeholders, while ByteDance itself will retain less than 20 percent of the venture, ensuring control remains primarily in American hands. Trump highlighted that the agreement would transform TikTok into what he referred to as a “complete American operation.” He noted that Oracle’s co-founder Larry Ellison has been directly involved in the discussions and will take a key role in managing the platform’s future. Under the new arrangement, Oracle will serve not only as an investor but also oversee TikTok’s data security and cloud hosting — a critical demand from US regulators who have expressed ongoing concerns regarding user data management under Chinese ownership.
“This is going to be run by Americans,” Trump remarked while announcing the decision, emphasizing Oracle’s leadership role as a safeguard for user data. However, there are lingering questions regarding the deal’s valuation. While the agreement values TikTok’s American operations at $14 billion, analysts had previously estimated the figure to be between $30 billion and $35 billion. Just last month, ByteDance as a whole was valued at nearly $330 billion, leading to skepticism about whether the agreed amount accurately reflects TikTok’s market potential. Currently, ByteDance has not released an official statement regarding the transaction, and the exact financial details remain undisclosed.
The executive order has also extended the deadline for completing the divestment process, with ByteDance now required to finalize the new ownership structure by December 16 to avoid penalties under US national security law. Trump asserted that Chinese President Xi Jinping had approved the deal after initial hesitation, overcoming one of the major obstacles to its implementation. This decision marks a crucial moment for TikTok, a leading global social media platform. With Oracle managing security and US investors taking charge, the deal aims to mitigate national security risks while maintaining TikTok’s accessibility for millions of American users.
Although the announcement clarifies the situation for now, much depends on how the final transaction develops and whether Beijing’s approval remains steadfast as the December deadline approaches.