President Donald Trump has signed an executive order that will allow TikTok to continue operating in the United States. The order approves a deal that would transfer majority ownership of TikTok’s U.S. operations to American investors. Importantly, Vice President J.D. Vance indicated the deal values TikTok’s U.S. business at $14 billion.
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This action prevents a ban on the app in the U.S. that was mandated by a 2024 law passed by Congress. Also, the order follows discussions between President Trump and Chinese President Xi Jinping last week to finalize the terms of the deal.
Deal Structure and Ownership
The approved deal will satisfy the requirements of a national security law that demands China-based ByteDance sell TikTok’s U.S. operations. Under the proposed terms, a new U.S. joint-venture company will manage TikTok’s American business, with ByteDance retaining a minority stake of less than 20%.
The main investors, who will control a stake of nearly 45%, are tech giant Oracle (ORCL), private equity firm Silver Lake, and MGX, an Abu Dhabi-based investment fund.
The remaining 35% will be owned by current ByteDance investors, including General Atlantic, Susquehanna, and Sequoia.
Vice President Vance said, “There was some resistance on the Chinese side, but the fundamental thing that we wanted to accomplish is that we wanted to keep TikTok operating, but we also wanted to make sure that we protected Americans’ data privacy as required by law.”
While the signing of the executive order is a key step, final details still need to be worked out by the parties involved before the sale is fully closed.
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