TLDRs;
- Trump signed an executive order approving a $14B TikTok US deal led by Oracle, Silver Lake, and MGX.
- American investors will control over 65% of TikTok US, while ByteDance keeps a 19.9% minority stake.
- Oracle will secure TikTok’s algorithm and user data, addressing US privacy and national security concerns.
- The deal awaits Chinese approval, and lawmakers question if it fully meets Congress’s divestiture mandate.
President Donald Trump has signed an executive order approving the transfer of TikTok’s US operations to a group of American and allied investors in a deal valued at $14 billion.
The agreement, which involves Oracle, Silver Lake, and Abu Dhabi-based MGX, aims to address long-running national security concerns over the popular social media platform’s ties to its Chinese parent, ByteDance.
The decision marks a turning point in TikTok’s turbulent US journey, with Washington insisting the transaction ensures American control of data and operations while keeping the app available to its 170 million US users.
Oracle, MGX, and Silver Lake Step In
Under the framework announced on September 25, Oracle will play a pivotal role in securing TikTok’s algorithm and housing American data on its cloud infrastructure.
Private equity firm Silver Lake and Abu Dhabi’s MGX, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, are also part of the consortium. MGX will reportedly take a 15% stake in TikTok US and a seat on the board.
Together, these firms are expected to control around 45% of the new entity, with US companies collectively holding just over 65%. ByteDance will retain a minority stake of 19.9%, raising questions in Washington about whether the deal fully meets Congress’s divestiture mandate.
Trump Frames Deal as National Security Victory
In announcing the agreement, Trump emphasized that the deal ensures TikTok will be “majority-owned and controlled by United States persons.” He highlighted the involvement of American tech leaders such as Larry Ellison, Michael Dell, and Rupert Murdoch’s Fox as signs of confidence in the arrangement.
“This is going to be American-operated all the way,” Trump said. “We have American investors taking it over, running it, and ensuring Americans’ data is safe.”
US Vice President JD Vance echoed this sentiment, stating the deal offers Americans greater confidence that their personal information will no longer be exposed to foreign influence.
China’s Position Remains Unclear
Despite Trump’s claims of a “good talk” with Chinese President Xi Jinping, Beijing has not publicly confirmed support for the deal. China’s Foreign Ministry has stated that any TikTok transaction must comply with its domestic laws, leaving final approval uncertain.
Meanwhile, ByteDance is expected to have one of seven board seats in the new company, with the rest controlled by American investors. The platform’s algorithm will reportedly be rebuilt and operated within the United States to further reduce Chinese oversight.
Still, the $14 billion valuation of TikTok’s US arm is a fraction of ByteDance’s overall estimated $330 billion market worth, underscoring the scale of the concession.
Ongoing Scrutiny from US Lawmakers
The political battle over TikTok has raged since Congress passed a 2024 law requiring ByteDance to divest its US assets or face a nationwide ban. Trump extended the deadline multiple times, ultimately brokering this new arrangement.
However, lawmakers remain skeptical. Questions linger over whether ByteDance’s minority stake and board presence align with national security requirements. Congress is also demanding further details on how Oracle will safeguard TikTok’s algorithm and ensure full compliance with US data protection laws.
For now, the deal buys TikTok time to continue operating in the US, but its long-term future remains dependent on approval from both Washington and Beijing.
