In a move that has sent ripples through the technology world and the global political landscape, President Donald Trump signed an executive order on Thursday, September 25, 2025, formalizing the U.S. government's approval of a $14 billion deal to spin off TikTok's American operations from its Chinese parent, ByteDance. The agreement, months in the making and fraught with political tension, ensures the popular video-sharing app will remain accessible to its more than 170 million U.S. users—at least for now.
The new American-controlled joint venture will be owned predominantly by U.S. investors, including tech giant Oracle, private equity powerhouse Silver Lake, venture capital firm Andreessen Horowitz, and investment group MGX. Oracle is set to play a particularly prominent role, tasked with overseeing security and retraining a copy of TikTok’s recommendation algorithm using U.S. user data. ByteDance, meanwhile, will retain less than a 20% stake, with only one ByteDance representative on the board—explicitly barred from involvement in security matters, according to The Economic Times and Nexstar Media Inc.
The deal comes in response to the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), a law passed by Congress in April 2024 with broad bipartisan support. The legislation required ByteDance to divest TikTok’s U.S. operations or face a nationwide ban, reflecting mounting concerns in Washington over data privacy, national security, and the potential for foreign influence through social media algorithms. As Vice President JD Vance explained, “The fundamental thing that we wanted to accomplish is that we wanted to keep TikTok operating, but we also wanted to make sure that we protected Americans’ data privacy as required by law, both because it’s the right thing to do, but also because it’s a legal requirement of the law that was passed last year by Congress.” (Nexstar Media Inc.)
President Trump, who had previously called for banning TikTok during his first term, shifted his stance during the 2024 campaign, acknowledging the app’s immense popularity among younger Americans. The platform, as highlighted by Pew Research Center, is now the primary news source for 43% of U.S. adults under 30—outpacing YouTube, Facebook, and Instagram. “The young people really wanted this to happen,” Trump said during the signing ceremony, adding, “We have American investors taking it over, running it, highly sophisticated, including Larry Ellison and Oracle, I guess, is going to play a very big role in terms of security, safety, and everything else.” (The Economic Times)
Yet, the path to Thursday’s announcement was anything but straightforward. Trump repeatedly delayed enforcement of the divest-or-ban law, aiming to strike a deal that would both keep TikTok running and satisfy national security hawks. According to The Economic Times and Nexstar Media Inc., the breakthrough came after Trump spoke directly with Chinese President Xi Jinping. “I had a very good talk with President Xi,” Trump said in the Oval Office. “A lot of respect for him. Hopefully, he has a lot of respect for me, too. And we talked about TikTok and other things, but we talked about TikTok and he gave us the go-ahead.”
China’s acquiescence is notable, given its earlier characterization of the U.S. demands as “an act of robbery.” Analysts suggest Beijing’s decision to allow the deal may reflect a desire to avoid further escalation of trade and technology tensions with Washington—or perhaps to extract concessions on other fronts. While China has not publicly confirmed Xi’s approval, the move marks a significant shift in Beijing’s approach to its global tech champions.
With the executive order now in place, a 120-day window has opened for finalizing the deal’s legal and financial details. The timeline, set to expire on January 23, 2026, gives both sides a narrow window to iron out complex technical and corporate challenges. Among the foremost issues: establishing robust corporate controls to ensure the new U.S. entity operates independently from ByteDance, and demonstrating that American investors have genuine control over the app’s algorithm, data, and content moderation.
Michael Sobolik of the Hudson Institute voiced skepticism about the transition’s smoothness, telling The Economic Times, “When they talk about Oracle providing security, that introduces the question of security from what?” He added that the real test will be whether America can truly secure and exercise full control over TikTok’s algorithm and user data.
Data privacy and cybersecurity attorney Lily Li echoed these concerns, emphasizing the need for “ironclad corporate controls.” As she explained, “The company’s ability to offer oversight and security might hinge first on the structure of the business and how independently it is able to act from Chinese parent company ByteDance.”
Despite the high-level assurances, not everyone is convinced the deal goes far enough. Lawmakers in Congress, including House Energy and Commerce Chair Brett Guthrie and Representatives Gus Bilirakis and Richard Hudson, praised the administration’s efforts but warned, “As the details are finalized, we must ensure this deal protects American users from the influence and surveillance of CCP-aligned groups.” (Nexstar Media Inc.) The specifics of how TikTok’s algorithm will be “retrained” on U.S. data, and whether ByteDance will have any residual influence, remain to be seen.
For TikTok’s American employees, the transition is a source of anxiety. Reports from The Economic Times indicate staff are worried about potential layoffs or restructuring as Oracle-led management takes the reins. Meanwhile, U.S. investors are expected to push for stronger monetization strategies, likely ramping up advertising and shopping features to recoup their $14 billion investment.
For users, the immediate impact will be minimal—TikTok will continue to operate, and the app’s familiar interface and features will remain intact, at least for now. However, as the platform’s algorithm adapts to U.S. oversight and data, subtle shifts in content trends and moderation practices may emerge. With American ownership comes not only the promise of tighter compliance with local laws but also the potential for increased political and commercial pressures shaping what users see.
This landmark deal sets a precedent for how the U.S. government may handle other foreign-owned applications in the future. Data sovereignty and algorithmic control have now moved to the forefront of American national security policy. As the dust settles, one thing is clear: the TikTok saga has fundamentally reshaped the conversation about technology, trade, and the intersection of global politics and everyday digital life.
For now, TikTok’s fate in America appears secure, but the story is far from over. The coming months will reveal whether the new American-led entity can truly deliver on its promises of security, independence, and innovation—or whether fresh challenges await as the world’s most influential social media stage continues to evolve.
