On Sept. 25, 2025, President Donald Trump signed an executive order aimed at finalizing the sale of TikTok’s U.S. operations to an American investor group, preventing a nationwide ban on the popular video app.
“We have American investors taking it over, running it, highly sophisticated,” Trump said during the signing.
The move follows months of negotiations to address national security concerns over TikTok’s Chinese ownership.
Role of Vice President JD Vance
Vice President JD Vance, who played a central role in brokering the deal, said the agreement ensures that Americans’ data security is protected, an issue that has drawn bipartisan scrutiny.
He added that the new U.S.-controlled venture will be valued at $14 billion once finalized.
Deal Structure and Key Players
The arrangement would spin off TikTok’s American operations into a new joint venture with majority U.S. ownership.
- Oracle will serve as the security provider, overseeing TikTok’s algorithm to prevent misuse.
- Billionaires Larry Ellison, Michael Dell, and media moguls Rupert and Lachlan Murdoch have been floated as potential members of the ownership group.
The final ownership structure will be announced once the deal closes, which could occur in early 2026.
National Security Concerns and Algorithm Control
Under the new agreement:
- TikTok’s algorithm will be transferred to the U.S.-based joint venture.
- Oracle will inspect and monitor the technology to ensure it is not exploited for “malicious purposes.”
U.S. officials across both Democratic and Republican administrations have argued that TikTok could pose a national security threat by potentially sharing American user data with Beijing. TikTok and its parent company ByteDance have repeatedly denied the allegations.
Background: The Divest-or-Ban Mandate
Concerns over TikTok’s ownership go back years:
- In 2024, President Joe Biden signed legislation banning TikTok unless ByteDance divested U.S. holdings.
- Since then, Trump has extended the sell-or-ban deadline three times during his second term to allow negotiations to continue.
The new executive order represents the most significant step yet toward resolving the long-running dispute and keeping TikTok active in the United States.
What’s Next
While Trump’s executive order clears a major hurdle, the deal still requires:
- Antitrust review to ensure compliance with fair market competition laws.
- Finalization of the ownership group and regulatory approvals.
If completed, the sale would create one of the largest U.S.-based social media ventures, securing TikTok’s future in America while addressing national security concerns.
