Trump Approves $14 Billion TikTok Deal via Executive Order, Vance Confirms

On Thursday, U.S. President Donald Trump signed an executive order approving a significant proposal that will allow TikTok to continue operating in the United States. According to Vice President JD Vance, the deal values TikTok’s U.S. operations at approximately $14 billion. This agreement comes amid regulatory pressure under U.S. national security law, which required China-based ByteDance, TikTok’s parent company, to divest its American operations or face an effective ban within the country. The executive order specifies that the transaction must still receive approval from Chinese authorities, after which a new joint-venture company will manage TikTok’s U.S. business. ByteDance will retain less than a 20% ownership stake in this new entity.

Under the proposed arrangement, major enterprise investors such as Oracle, Silver Lake, and Abu Dhabi-based MGX investment fund will hold roughly 45% of the new company. ByteDance investors, alongside new stakeholders, are expected to own approximately 35%. CNBC reporter David Faber highlighted that the transaction is structured to maintain U.S. control over operations, with Oracle overseeing security and cloud computing services for the new entity. Oracle CEO Larry Ellison will be involved in the ownership group, and President Trump emphasized that TikTok’s operations in the U.S. will be “owned by Americans, and very sophisticated Americans,” ensuring full American operational control.

No representatives from ByteDance were present during the signing, and the company has not formally acknowledged that a transaction is occurring. Details regarding the purchase price were not disclosed, and it remains unclear whether any modifications to Chinese law are required to facilitate the deal. President Trump stated that Chinese President Xi Jinping approved the agreement, although Vance mentioned that the Chinese government initially displayed some resistance before finalizing terms.

The transaction includes contributions from ByteDance investors such as General Atlantic, Susquehanna, and Sequoia, who will provide equity in the newly formed U.S. entity. ByteDance’s global valuation was reported at $330 billion last month, with analysts estimating TikTok’s U.S. operations alone could be worth between $30 billion and $35 billion. Notably, the federal government will not take an equity stake or hold a so-called “golden share” in the U.S. operations, leaving ownership largely in the hands of American private investors.

Additionally, Trump indicated that media mogul Rupert Murdoch and his son Lachlan Murdoch, alongside Ellison and Michael Dell, CEO of Dell Technologies, could also be involved in aspects of the TikTok U.S. venture. This executive order follows a prior Trump administration order that extended ByteDance’s deadline to divest U.S. operations, initially imposed under a national security law signed by former President Joe Biden. The order temporarily prevents the Department of Justice from enforcing the law until December 16, which would otherwise penalize app store operators like Apple and Google, as well as internet service providers, for providing services to TikTok’s U.S. operations.

Overall, the approved deal seeks to maintain TikTok’s presence in the United States while satisfying U.S. national security concerns. By establishing a joint venture controlled predominantly by American investors, the administration aims to ensure both operational oversight and compliance with federal regulations. The plan reflects ongoing efforts to balance national security with economic and technological interests, providing a legal pathway for TikTok to continue functioning in the U.S. market while addressing the geopolitical and regulatory challenges associated with a Chinese-owned social media platform.