A deal to transfer TikTok’s US operations to US owners appears to be getting closer.
Donald Trump yesterday (September 25) signed an executive order providing the legal framework for a “qualified divestiture” that would transfer majority control of TikTok’s US operations to American investors, though the deal still requires Chinese government approval.
The executive order, titled “Saving TikTok While Protecting National Security,” establishes the structure for a transaction that would allow TikTok’s 170 million US users to continue accessing the video-sharing platform under strict new security protocols, while granting a 120-day enforcement delay to finalize the deal.
Speaking on Thursday, Vice President JD Vance said the proposed transaction would value TikTok’s US operations at “around $14 billion.”
Reuters noted that the price tag is “far below some analyst estimates”.
Under the proposed framework, American investors would control more than 80% of TikTok’s US operations through a newly established joint venture, while ByteDance‘s stake would drop below 20%.
Oracle would serve as the “trusted security partner” responsible for operating, retraining, and continuously monitoring TikTok’s powerful reccomendation algorithm in ths US, in order to “ensure content is free from improper manipulation or surveillance,” according to White House officials.
The tech giant would also oversee application development and source code review, building on its existing relationship with TikTok through the multibillion-dollar Project Texas data storage partnership.
The arrangement addresses longstanding Congressional concerns that China could pressure ByteDance into sharing user data or manipulating content recommendations for propaganda purposes.
Under the proposed structure, all US user data must be stored in cloud environments operated by American companies, with ByteDance excluded from any “operational relationship” with the US joint venture.
High-profile investors reportedly joining the consortium include media mogul Rupert Murdoch, Dell Technologies founder Michael Dell, and Oracle Chairman Larry Ellison, alongside venture capital firms Andreessen Horowitz and Silver Lake Management.
ByteDance would hold just one seat on the seven-member board and would be excluded from the security committee.
For the music industry, the platform has become integral to breaking new tracks and driving streaming consumption, with many labels and artists heavily dependent on TikTok’s algorithm for reaching audiences.
The executive order grants a 120-day enforcement delay, during which the Justice Department will not pursue penalties against app stores or hosting services supporting TikTok. Trump’s order also provides legal immunity for any conduct occurring during previous delay periods dating back to January 2025.
However, questions remain about Chinese government approval and the effectiveness of separating TikTok from Beijing’s influence. Representative John Moolenaar, chairman of the House Select Committee on China, said last week that he remained concerned about “ongoing reliance by the new TikTok on a ByteDance algorithm” that could enable continued Chinese control.
White House Press Secretary Karoline Leavitt said on Monday (September 23) that users will maintain access to international content, while stating on Saturday (September 21) that the administration is “100% confident that a deal is done.”
The arrangement must still secure final approvals from both US and Chinese governments to take effect.
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