Trump signs executive order to transfer TikTok to American owners
| 2025-09-26
Trump Signs Executive Order for TikTok's US Operations Sale
President Donald Trump approves a deal to sell TikTok's US operations to protect data privacy and meet national security requirements.
On Thursday, September 25, 2025, U.S. President Donald Trump signed an executive order that approves the sale of TikTok’s operations in the United States to a group of American investors. This transaction aims to address longstanding national security concerns associated with the app's Chinese ownership by ByteDance. Vice President JD Vance noted that the new venture will be valued at approximately $14 billion.
Executive Order Details
The executive order is a significant move towards complying with legislation that mandates ByteDance to divest its interests in TikTok's U.S. operations or face a ban under a law enacted in 2024. This new arrangement will create a joint venture where ByteDance retains less than a 20% stake. The deal is expected to enhance the security of user data and remove any potential influence from China over the platform.
American tech giant Oracle, alongside investment firms Silver Lake and MGX from Abu Dhabi, will initially control approximately 45% of the new company. Other investments will come from stakeholders previously associated with ByteDance, contributing around 35% of the new entity.
Resistance in Negotiations
During a press conference, Vance commented on the negotiations with Chinese authorities, stating, "There was some resistance on the Chinese side, but the fundamental aim was to keep TikTok operational while ensuring Americans' data privacy."
President Trump claimed to have personally spoken with Chinese President Xi Jinping, who expressed support for the deal. Trump conveyed, "I told him what we were doing, and he said, ‘Go ahead with it.’"
Impact on Users and Content
With around 170 million users in the U.S., TikTok has emerged as a crucial platform for social interaction. Trump has previously credited TikTok's popularity with aiding his re-election bid in 2024. At the signing, he remarked that the new TikTok will be entirely American-operated: "This is going to be American-operated all the way." He further expressed hopes for the algorithm to favour more conservative content, stating, "If I could, I would make it 100% MAGA-related," but reassured that all content groups will be treated equally.
Political Reactions
In Congress, some Republican lawmakers have called for transparency regarding the deal, demanding assurances that it will effectively eliminate any ties to China. Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson commented that it is crucial to protect American users from foreign surveillance.
Trump's administration continues to face scrutiny over perceived overreach in the tech industry. The executive order follows earlier measures where the federal government sought to influence domestic technology sectors, including taking a stake in Intel.
Future Developments
The legal framework for this sale has been contentious, with previous bipartisan pushback over privacy concerns linked to TikTok’s operations. TikTok has consistently refuted allegations that it could enable the Chinese government to manipulate information or undermine U.S. democracy.
The timeline for completing the divestment is estimated at 120 days. As discussions progress, more specific details regarding the new board and investor composition are anticipated to be revealed.
Overall, the decision to sell TikTok's U.S. operations marks a significant shift in how large technology platforms may be governed moving forward, amidst increasing calls for transparency and security in tech dealings.
Executive Order Details
The executive order is a significant move towards complying with legislation that mandates ByteDance to divest its interests in TikTok's U.S. operations or face a ban under a law enacted in 2024. This new arrangement will create a joint venture where ByteDance retains less than a 20% stake. The deal is expected to enhance the security of user data and remove any potential influence from China over the platform.
American tech giant Oracle, alongside investment firms Silver Lake and MGX from Abu Dhabi, will initially control approximately 45% of the new company. Other investments will come from stakeholders previously associated with ByteDance, contributing around 35% of the new entity.
Resistance in Negotiations
During a press conference, Vance commented on the negotiations with Chinese authorities, stating, "There was some resistance on the Chinese side, but the fundamental aim was to keep TikTok operational while ensuring Americans' data privacy."
President Trump claimed to have personally spoken with Chinese President Xi Jinping, who expressed support for the deal. Trump conveyed, "I told him what we were doing, and he said, ‘Go ahead with it.’"
Impact on Users and Content
With around 170 million users in the U.S., TikTok has emerged as a crucial platform for social interaction. Trump has previously credited TikTok's popularity with aiding his re-election bid in 2024. At the signing, he remarked that the new TikTok will be entirely American-operated: "This is going to be American-operated all the way." He further expressed hopes for the algorithm to favour more conservative content, stating, "If I could, I would make it 100% MAGA-related," but reassured that all content groups will be treated equally.
Political Reactions
In Congress, some Republican lawmakers have called for transparency regarding the deal, demanding assurances that it will effectively eliminate any ties to China. Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson commented that it is crucial to protect American users from foreign surveillance.
Trump's administration continues to face scrutiny over perceived overreach in the tech industry. The executive order follows earlier measures where the federal government sought to influence domestic technology sectors, including taking a stake in Intel.
Future Developments
The legal framework for this sale has been contentious, with previous bipartisan pushback over privacy concerns linked to TikTok’s operations. TikTok has consistently refuted allegations that it could enable the Chinese government to manipulate information or undermine U.S. democracy.
The timeline for completing the divestment is estimated at 120 days. As discussions progress, more specific details regarding the new board and investor composition are anticipated to be revealed.
Overall, the decision to sell TikTok's U.S. operations marks a significant shift in how large technology platforms may be governed moving forward, amidst increasing calls for transparency and security in tech dealings.
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