By JOHN ZURCHER
Washington, DC – September 26, 2025
In a dramatic resolution to months of geopolitical tension, President Donald Trump signed an executive order on Thursday approving a landmark deal that hands majority control of TikTok’s U.S. operations to American investors, averting a nationwide ban on the popular short-video app. Trump revealed that Chinese President Xi Jinping personally “gave us the go-ahead” during recent talks, marking a rare diplomatic win amid escalating U.S.-China trade frictions.
Donald Trump approves TikTok deal ensuring the popular social media platform won’t be banned in the US.
The agreement, finalized after intense negotiations, restructures TikTok’s ownership to comply with a 2024 law signed by former President Joe Biden, which mandated ByteDance—the Beijing-based parent company—to divest its U.S. assets by early 2025 or face prohibition. Under the new framework, a consortium of U.S. investors will acquire a controlling stake in a restructured American entity valued at approximately $14 billion, according to Vice President JD Vance. ByteDance will retain less than 20% equity, with its sole board representative barred from security-related decisions.
Leading the investor group is Oracle, the enterprise software giant, which will oversee TikTok’s data security and cloud infrastructure—critical safeguards against concerns over potential Chinese government access to user information. Other key backers include private equity firm Silver Lake and Abu Dhabi-based MGX investment fund, collectively holding about 45% of the new joint venture. Reports also suggest involvement from Trump allies like Oracle co-founder Larry Ellison and Dell Technologies CEO Michael Dell, though details remain under wraps.
“This is interesting because I had a very good talk with President Xi—a lot of respect for him,” Trump said during the White House signing ceremony, flanked by tech executives and administration officials. “Hopefully, he has a lot of respect for me, too. We talked about TikTok, and he gave us the go-ahead. It’s run by American investors and American companies, great ones… including Larry Ellison and Oracle, which is going to play a very big role in terms of security, safety, and everything else.”
Vance echoed the sentiment, emphasizing the balance between innovation and national security. “We wanted to keep TikTok operating but address security concerns so that Americans can use TikTok with more confidence than they had in the past,” he told reporters. The vice president highlighted youth support for the app, noting that “young people really wanted this to happen.”
The deal’s path was anything but smooth. Trump repeatedly extended deadlines set by Congress, using executive orders to pause enforcement while his administration brokered talks with ByteDance. Beijing initially decried U.S. demands as “an act of robbery,” but softened its stance in recent weeks. Analysts speculate China extracted trade concessions—possibly on tariffs or technology exports—in exchange, paving the way for a potential Xi-Trump summit in South Korea next month to tackle broader issues like fentanyl flows and Russia’s Ukraine invasion.
White House officials confirmed that the U.S. will now control TikTok’s core algorithm, a proprietary technology long viewed as a national security risk due to its potential for manipulation. “Data for the U.S. JV will be managed by Oracle,” a senior aide said, underscoring the shift to American oversight.
TikTok’s cultural footprint in America is immense. A Pew Research Center survey released Thursday revealed that 43% of U.S. adults under 30 rely on the platform for news—surpassing YouTube, Facebook, and Instagram. With over 170 million American users, any shutdown could have reshaped online discourse, especially among Gen Z. The app’s fate had become a flashpoint in U.S.-China relations, blending tech rivalry with fears of foreign influence.
Critics, including some conservative lawmakers tied to Project 2025, argued for full divestment, warning the partial ByteDance stake leaves a “backdoor” for espionage. “Anything short of total separation is a compromise with Beijing,” one GOP senator tweeted post-announcement. Privacy advocates also raised eyebrows, questioning whether Oracle’s involvement—amid its own government contracts—truly insulates user data.
Supporters hailed it as pragmatic diplomacy. “This preserves a vital platform for free expression while protecting our interests,” said Sen. Marco Rubio (R-FL), a longtime China hawk who helped craft the divestiture law. Tech industry leaders breathed a sigh of relief, with shares in Oracle and Dell ticking up 2-3% in after-hours trading.
As implementation unfolds, questions linger: Will the deal face legal challenges? How will ByteDance’s minority role affect content moderation? And could this thaw signal progress on thornier issues like semiconductor curbs?
For now, TikTok lives on—in American hands. “The young people really wanted this,” Trump reiterated, grinning at the cameras. In an era of digital cold wars, it’s a reminder that even viral dances can dance to the tune of high-stakes statecraft.
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