After years of political wrangling, President Donald Trump has approved a plan to shift TikTok’s US business into American hands. The executive order, signed on Thursday, calls for the creation of a new joint venture that will be majority-owned by US investors. ByteDance, TikTok’s parent company in China, will retain less than a 20 percent stake.
The deal, valued at about 14 billion dollars, follows intense pressure from Congress and two administrations to sever TikTok’s ties to Beijing. A law passed last year forced ByteDance to sell or face a nationwide ban. Trump had repeatedly extended the deadline for a divestment, but the new order signals a turning point.
Who’s Involved
Trump has pointed to Oracle cofounder Larry Ellison, Dell CEO Michael Dell, and media magnate Rupert Murdoch as participants. He described the group as a mix of “world-class investors.” Vice President JD Vance referred to it as a blue-chip consortium, while emphasizing that control of TikTok’s algorithm would rest firmly with American investors.
Oracle’s role goes beyond investment. The company will oversee audits of TikTok’s algorithm, which is to be retrained and operated in the United States, separate from ByteDance’s systems. A White House spokesperson said this structure will ensure that US users continue to interact with global creators while maintaining domestic oversight of data and content operations.
Unanswered Questions
The executive order frames the arrangement as a “Framework Agreement,” suggesting that negotiations are still ongoing. It does not clarify when ownership will formally change hands, nor does it explain whether American users will need to download a new version of the app.
The future of TikTok’s advertising and e-commerce efforts also remains uncertain. Marketers want to know whether they will still be able to run campaigns that reach global audiences, and employees are wondering about TikTok Shop, the platform’s shopping service. Some staff members worry the new owners may sideline their teams or cut jobs as priorities shift. Others question how their ByteDance stock options will be treated after the restructuring.
Market Context
Analysts had valued TikTok’s US business far higher than the figure in the order. Morningstar projected earlier this year that it could sell for more than 50 billion dollars, while Fidelity pegged ByteDance’s overall worth at 385 billion dollars in July. In comparison, TikTok US’s valuation now places it in the same league as Snap, the company behind Snapchat.
Despite the lower figure, the deal gives TikTok stability after years of threats. A former attempt to grant the US government a direct equity share was dropped due to concerns over constitutional challenges. This time, Washington will not take a stake, though the government expects to collect a fee for facilitating the sale.
Geopolitical Signals
Trump said he spoke directly with China’s President Xi Jinping, who, according to him, gave informal approval. Beijing has not issued a formal statement, leaving open questions about final sign-off. For Washington, the agreement is framed as a way to keep US data out of the hands of a foreign adversary. For TikTok’s American users, the focus is on continuity of service rather than politics.
Staff Reactions
Inside the company, relief is mixed with anxiety. Some employees say the decision provides clarity after years of political back-and-forth. Yet many are still worried about layoffs, budget cuts, and the possibility that a “retrained” US algorithm may fall short of the performance of ByteDance’s original system.
“It’s better than endless uncertainty,” one employee said, while acknowledging that much about their future remains unresolved.
What Comes Next
The White House has promised further announcements in the coming days. For now, TikTok continues to operate in the United States without the immediate threat of a ban, but the path forward depends on how quickly the new joint venture can move from framework to reality.
Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.
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