On September 25, 2025, President Donald Trump signed an executive order approving a deal that allows TikTok to continue its operations in the United States under new ownership. The agreement grants majority control of TikTok’s U.S. business to a U.S.-led investor group, addressing national security concerns while maintaining the app’s availability to millions of American users.
The deal, valued at approximately $14 billion, restructures TikTok’s U.S. operations into a new joint venture. American investors, including Oracle Corporation, Silver Lake Partners, and Abu Dhabi-based investment firm MGX, will collectively own over 65 percent of the new entity. ByteDance, TikTok’s Chinese parent company, will retain a minority stake of less than 20 percent and will not have representation on the new company’s security committee. ByteDance will license its recommendation algorithm to the U.S. entity, ensuring compliance with U.S. regulations.
Vice President JD Vance played a key role in negotiating the arrangement, reportedly pressing hard on national security issues and threatening a ban on the app if an agreement could not be reached. Vance’s involvement was instrumental in bringing the parties to consensus, according to senior administration officials. The deal is being positioned as a strategic measure to safeguard American user data and prevent foreign control over a platform that reaches millions of Americans daily.
Despite approval, the arrangement has drawn criticism from various quarters. Cybersecurity experts warn that ByteDance’s continued involvement through algorithm licensing may not fully address concerns about foreign influence over TikTok’s operations. Critics also question the presence of Middle Eastern investors, particularly MGX, and whether this arrangement truly ensures American control over the platform.
Legal analysts point out that the deal will likely face further scrutiny from Congress and regulators. The agreement arrives amid heightened tensions in the U.S.-China trade relationship, and some experts suggest it could set a precedent for how the United States handles foreign-owned technology firms in the future.
For TikTok, the deal secures its continued presence in the U.S. market but under a restructured ownership model. For the Trump administration, it represents a balancing act between protecting national security and maintaining open access to popular digital platforms.
As the geopolitical rivalry between Washington and Beijing deepens, the TikTok agreement highlights the growing complexity of managing cross-border technology investments. It also underscores the challenges facing the United States in regulating foreign-owned platforms without disrupting access to popular services.
The executive order is expected to take effect following final regulatory review, with implementation of the ownership transfer projected in early 2026.
