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U.S. President Donald Trump signed an executive order Thursday approving a deal that will allow TikTok to continue operating in the United States under new ownership and security conditions.
The move follows a bipartisan law, upheld by the Supreme Court, that required TikTok’s Chinese parent company ByteDance to divest its U.S. operations or face a nationwide ban.
The order prohibits any operational ties between ByteDance and a U.S.-owned version of the app, though it grants the president authority to determine what qualifies as a true divestiture.
According to White House officials, the agreement constitutes a "qualified divestiture." American investors, including Oracle, will acquire a stake in the company, while Oracle will provide "top to bottom security" by hosting U.S. user data and reviewing the app's code.
Under the plan, TikTok's recommendation algorithm—considered the company's most valuable asset—will be copied and retrained to operate exclusively on American data. Officials stated the algorithm will be continuously monitored to ensure it is secure and free from undue influence.
Vice President JD Vance, who led the negotiations, estimated that the new U.S. entity would be valued at around $14 billion, though the final figure will depend on the investors' assessment.
At a White House ceremony, Trump said the U.S. version of TikTok would be backed by a group of prominent investors, including Oracle founder Larry Ellison, technology investor Michael Dell, and media executive Rupert Murdoch. Investment firm Silver Lake Partners and venture capital company Andreessen Horowitz are also expected to take part.
Trump emphasized that the new entity would not serve any political agenda. "If I could make it 100% MAGA I would, but it's not going to work out that way unfortunately," he said. "Every group, every philosophy, every policy, will be treated very fairly."
Trump confirmed that Chinese President Xi Jinping had given his approval for the deal during a recent phone call. He said China's support was necessary to ensure the transaction could proceed smoothly.
China's state broadcaster CCTV reported that Xi told Trump Beijing supports market-based negotiations that comply with Chinese laws. Beyond this statement, Chinese authorities have remained largely silent.
Despite the announcement, some lawmakers expressed concerns. Representative John Moolenaar, chair of the House China Committee, warned that the arrangement might still leave room for Chinese influence if TikTok relies on a ByteDance-designed application or algorithm.
White House officials insisted the deal complies fully with U.S. law and provides sufficient safeguards to protect American users' data and prevent foreign interference.
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