Trump signs executive order transferring TikTok to US ownership
4 Min Read
The US president has signed a deal to transfer TikTok to US investors, separating it from ByteDance and allowing the app to continue operating nationwide.
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President Donald Trump speaks before signing a presidential memorandum on the death penalty in the District of Columbia in the Oval Office at the White House, Thursday, September 25, 2025, in Washington. (AP)
US President Donald Trump has signed an executive order approving a deal to transfer TikTok to American ownership, allowing the app to continue operating in the United States.
Trump announced on Thursday that he had reached an understanding with Chinese President Xi Jinping to separate TikTok from its Beijing-based parent company, ByteDance, in compliance with a US law that would have forced the platform’s shutdown if not divested.
“I spoke with President Xi and he said, ‘Go ahead with it,’” Trump said at a press conference. “This is going to be American-operated all the way.”
Deal terms and valuation
Under the agreement, US investors will control roughly 80% of TikTok’s American operations, while ByteDance and Chinese stakeholders will hold less than 20%. The US entity will be governed by a seven-member board made up mostly of cybersecurity and national security experts, six of whom will be American.
The new company will be valued at $14 billion, according to Vice President JD Vance, who spoke alongside Trump. That figure stands in stark contrast to ByteDance’s estimated $330 billion global valuation and far below Meta’s market capitalization of about $1.8 trillion.
Oracle will lead the American investor group, overseeing US operations, storing user data on its cloud servers, and licensing control of TikTok’s recommendation algorithm. Other high-profile investors include Rupert Murdoch and Dell Technologies founder Michael Dell, Trump said.
MAGA algorithm?
When asked whether TikTok’s algorithm might begin prioritizing MAGA-related content, Trump quipped, “I always like MAGA-related. If I could, I’d make it 100% MAGA-related” but added that the platform would continue recommending diverse content “fairly".
The decision ends months of legal uncertainty for TikTok, which counts about 180 million US users. Trump credited the platform with boosting his 2024 presidential campaign and has tied the deal to his broader efforts to expand US influence over the tech sector.
His administration recently acquired a 10% stake in Intel and has pressured companies such as Apple and Nvidia to ramp up domestic investment.
National security concerns
Congress had previously voted to compel ByteDance to divest TikTok or face a ban, citing national security concerns over data privacy and alleged potential for Chinese government influence. The US Supreme Court upheld the law in January.
Trump, who had delayed implementing the ban since taking office, signed the “Saving TikTok” executive order on Thursday, declaring the deal a “qualified divestiture” that resolves those concerns. The separation from ByteDance is expected to be completed within 120 days.
While Trump had earlier suggested the US would collect a “fee-plus” for brokering the deal, on Thursday, he said the government would simply tax the new company under normal rules. “We’re gonna make money and we’re going to get a lot of money in taxes,” he said.
