On Friday, September 26, 2025, U.S. President Donald Trump signed an executive order at the White House, advancing plans for American investors to acquire TikTok's U.S. operations from its Chinese owner, ByteDance Ltd. The deal, valued at $14 billion, aims to address national security concerns by transferring control to a U.S.-based entity.
The executive order follows a 2024 law mandating ByteDance to divest its U.S. operations or face a ban. Trump stated that he had secured approval from Chinese President Xi Jinping, although the Chinese government has not publicly confirmed this endorsement. "I had a very good talk with President Xi," Trump remarked, emphasizing the importance of the deal in safeguarding American users' data.
The proposed transaction involves creating a new U.S. company, with ByteDance retaining less than a 20% stake. Oracle Corp. is set to play a significant role in securing the app's data and recommendation algorithm, ensuring it remains free from foreign influence. Vice President J.D. Vance highlighted the deal's compliance with national security requirements, noting that the algorithm would be retrained under U.S. oversight.
Despite Trump's announcement, key details remain unresolved, including the final composition of the investor group and the exact terms of the algorithm's management. Oracle, Silver Lake Management LLC, and Abu Dhabi-based MGX are reportedly in discussions to invest in TikTok U.S., but the talks are ongoing.
While Trump has expressed confidence in the deal's progress, the Chinese embassy in Washington reiterated the need for a fair and non-discriminatory environment for Chinese investors. The lack of a formal statement from Beijing leaves the transaction's future uncertain.
Congressional scrutiny is expected, with lawmakers seeking assurances that the deal effectively severs ByteDance's control over TikTok's U.S. operations. Representative Raja Krishnamoorthi emphasized the need for transparency, stating, "If a deal has been struck, the details need to be shared with Congress."
The executive order grants a 120-day window to finalize the transaction, extending the deadline to January 2026. As negotiations continue, the deal's outcome remains a pivotal point in U.S.-China relations, with implications for data privacy and international trade dynamics.
