One of the final moves by President Donald Trump’s administration was to lay out a strategy to have TikTok’s US operations sold off to a joint venture led by American interests. This measure would prevent a ban that was to come into effect under a 2024 law, which required the separation of the US business from the Chinese parent company ByteDance. The deal, signed through an executive order in September 2025, values the branch at $14 billion and, after negotiations with China’s President Xi Jinping, assures that data and the algorithm remain under American control.
Details of the Deal Structure
The consortium, made up of Oracle, Silver Lake, Michael Dell, and Rupert Murdoch, will have a stake of about 50% after the acquisition. US investors will hold the majority of the ownership and secure board seats. Seven of those seats will be from ByteDance, but together they will not exceed 20%. The recommendation algorithm, created specifically for US operations, is managed by Oracle, with security monitoring used to safeguard user privacy. ByteDance will retain a very small income share through e-commerce links, but the company will otherwise be completely American.
Timeline and Challenges
Enforcement was delayed by Trump until January 2025, allowing approvals to move quickly despite resistance from Chinese media, which also removed reports alleging ByteDance’s dominance. Possibly, a new app solely for the US market will be launched, changing the user experience while keeping the main features intact. The White House has called this a victory for national security, with Vice President JD Vance pointing to productive dialogue with Xi.
Broader Impact
The agreement settles uncertainty that lasted for years, combining investor interest from Susquehanna and KKR with strict regulatory requirements. The door remains open for TikTok, but with increased safeguards to prevent data risks, signaling stronger US tech sovereignty. Opponents of the deal question the valuation and access to the algorithm, yet the agreement is largely framed around continuity for the platform’s 170 million users.
