TikTok Sale Gains Final Approval in Trump 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 legal battle over the app’s Chinese ownership.

The deal involves a joint venture led by Oracle. It must be finalized within 120 days. This action follows a U.S. law requiring TikTok to be sold or face a ban.

Structure of the TikTok and Oracle Agreement

A new company will oversee TikTok in the United States. According to CNBC, Oracle, Silver Lake, and Abu Dhabi’s MGX fund are key partners. This joint venture will control a 45 percent stake in the app.

TikTok’s parent company, ByteDance, will retain less than 20 percent. Other investors will hold the remaining 35 percent. Oracle has a critical security role in the new arrangement.

The company will provide cloud computing services. It will also monitor and retrain TikTok’s core algorithm. ByteDance will lease the algorithm to the U.S. entity under strict oversight.

Political Hurdles and Market Valuation

The deal values TikTok’s U.S. business at $14 billion. Vice President JD Vance confirmed this figure. This valuation is less than half of some earlier estimates.

A significant challenge remains. The Chinese government must still approve the transaction. China has previously opposed forcing a sale of TikTok.

President Trump claims he received verbal approval from President Xi Jinping. However, no Chinese representatives attended the order signing. The next 120 days will be crucial for finalizing the agreement.

This development potentially ends a major standoff between the U.S. and China over technology and data security. The TikTok Oracle deal now moves to a critical implementation phase.

Info at your fingertips

What is Oracle’s role in the new TikTok deal?

Oracle will manage TikTok’s U.S. data security. The company will also provide all cloud computing services. It is tasked with monitoring the app’s algorithm for compliance.

How much is the U.S. TikTok company worth?

The U.S. operations are valued at $14 billion. This figure was confirmed by U.S. Vice President JD Vance. It is significantly lower than previous market estimates.

Does ByteDance still own TikTok?

ByteDance will retain a minority stake of less than 20%. The majority control shifts to the U.S.-led joint venture. The parent company will lease the algorithm to the new entity.

What happens if China does not approve the sale?

The deal could collapse without China’s approval. This would likely trigger the enforcement of the existing U.S. ban. The situation would return to a state of legal uncertainty.

Is TikTok currently banned in the United States?

Technically, yes. A law banning it was passed in early 2024. However, President Trump has repeatedly delayed its enforcement, allowing the app to remain available.