TikTok Sale Advances as Trump Approves Deal with Executive Order

President Donald Trump signed an executive order today. The order approves a deal for TikTok’s U.S. operations. This move aims to resolve a long-standing national security concern. The action was confirmed by reports from CNBC.

The deal creates a new U.S.-led company to own TikTok. This complies with a law requiring the app’s sale. Failure to comply would have resulted in a ban.

Oracle to Oversee Security in New Ownership Structure

A joint venture will control TikTok’s U.S. business. Oracle, Silver Lake, and Abu Dhabi’s MGX fund are key partners. ByteDance, TikTok’s Chinese parent, will retain a minority stake of less than 20 percent. According to CNBC, the new U.S. entity values TikTok at $14 billion.

Oracle has a critical role in the agreement. The company will manage all U.S. data security. It will also provide cloud computing services. The algorithm will be licensed and monitored by Oracle.

Political Hurdles and Timeline for Final Approval

The deal now faces a significant challenge. It requires official approval from the Chinese government. China has previously opposed a forced sale of TikTok. President Trump claims he received verbal approval from President Xi Jinping.

Congress passed the ban law earlier this year. Trump has repeatedly delayed its enforcement. The involved parties have 120 days to finalize the transaction. This sets a late January 2026 deadline.

This TikTok Oracle deal represents a major shift in U.S. tech policy. Its success hinges on international cooperation. The outcome will shape the future of foreign-owned apps in America.

Dropping this nugget your way

What companies are involved in the TikTok deal?

Oracle, Silver Lake, and the MGX investment fund lead the new venture. They will control a 45 percent stake. ByteDance and other investors hold the remainder.

What is Oracle’s specific role?

Oracle is tasked with overseeing all U.S. user data security. It will also host TikTok’s operations on its cloud servers. This is to ensure data does not leave the country.

Why does TikTok need to be sold?

The U.S. government passed a law citing national security risks. It targets apps controlled by foreign adversaries. The law gave ByteDance a choice to sell or face a ban.

What is the current status of the TikTok ban?

The ban was signed into law but has not been enforced. President Trump has used his authority to delay its implementation. This allowed time for a negotiated deal.

What happens if China does not approve the deal?

The agreement cannot be finalized without China’s consent. This would likely lead to a legal and political standoff. The future of TikTok in the U.S. would again be uncertain.