President Donald Trump approved a major deal on 25 September 2025, allowing TikTok to continue operating in the United States under American-led management. The agreement satisfies the requirements of a 2024 national security law, which mandated that China-based ByteDance divest TikTok’s US operations or face a ban. The deal creates a new US-controlled entity in which Oracle and Silver Lake , alongside the Abu Dhabi-based MGX fund, will collectively hold about 45 per cent of the company. ByteDance retains a minority stake of less than 20 per cent. This move addresses national security concerns, ensures data protection for American users, and keeps the hugely popular app accessible while involving prominent US investors.
TikTok US takeover : The structure of the deal
The deal forms a joint venture to manage TikTok’s US operations. Oracle, led by CEO Larry Ellison, will provide cloud services and oversee app security, signalling strong US operational control. Silver Lake and MGX will also be major investors. ByteDance maintains a minority stake of under 20 per cent, with only one board seat, while the new board of directors for TikTok US will have six American-appointed members. Existing ByteDance investors such as Susquehanna International Group, General Atlantic, and KKR also retain stakes. The total valuation of the US operation is estimated at $14 billion, with the new entity fully operational under American governance.
National security and regulatory context
The 2024 law required ByteDance to sell its US operations due to concerns over Chinese access to American user data. TikTok, with approximately 170 million US users, is widely used across younger demographics, making data privacy a critical concern. Trump’s executive order delays the ban and provides up to 120 days to complete the divestiture. By creating a US-controlled entity and retraining TikTok’s recommendation algorithm under American oversight, the deal ensures compliance with national security requirements while keeping the platform active in the US.
Key motives behind Trump’s approval
Trump’s approval of the deal balances national security, economic, political, and diplomatic considerations:
National security: US control reduces risks of Chinese government surveillance or propaganda.
Investors and US operational control
Oracle’s involvement ensures the app’s security and cloud infrastructure is managed by US companies. Silver Lake, MGX, and other American investors collectively hold 45 per cent ownership, creating a majority US-controlled entity. ByteDance retains less than 20 per cent and only one board seat, limiting Chinese influence. Prominent figures like Rupert Murdoch, Lachlan Murdoch, and Michael Dell are also reportedly involved, strengthening the perception of US oversight and accountability.
The TikTok deal safeguards American user data, maintains a vital social media platform, and addresses bipartisan security concerns. It resolves years of uncertainty over TikTok’s US presence while setting a precedent for handling foreign tech ownership and data privacy. By creating a US-led entity, the deal demonstrates how national security, economic interests, and diplomacy can intersect in the tech industry, with potential implications for other foreign-owned platforms.
The divestiture process is expected to be completed within the 120-day window outlined in Trump’s executive order. Regulatory bodies will continue monitoring the platform to ensure compliance with US security standards. The deal could serve as a model for future cases where foreign ownership of critical tech platforms intersects with national security concerns, reinforcing American control over sensitive data while keeping popular services available to US users.
TikTok US takeover : The structure of the deal
The deal forms a joint venture to manage TikTok’s US operations. Oracle, led by CEO Larry Ellison, will provide cloud services and oversee app security, signalling strong US operational control. Silver Lake and MGX will also be major investors. ByteDance maintains a minority stake of under 20 per cent, with only one board seat, while the new board of directors for TikTok US will have six American-appointed members. Existing ByteDance investors such as Susquehanna International Group, General Atlantic, and KKR also retain stakes. The total valuation of the US operation is estimated at $14 billion, with the new entity fully operational under American governance.
National security and regulatory context
The 2024 law required ByteDance to sell its US operations due to concerns over Chinese access to American user data. TikTok, with approximately 170 million US users, is widely used across younger demographics, making data privacy a critical concern. Trump’s executive order delays the ban and provides up to 120 days to complete the divestiture. By creating a US-controlled entity and retraining TikTok’s recommendation algorithm under American oversight, the deal ensures compliance with national security requirements while keeping the platform active in the US.
Key motives behind Trump’s approval
Trump’s approval of the deal balances national security, economic, political, and diplomatic considerations:
National security: US control reduces risks of Chinese government surveillance or propaganda.
- Economic interests: Preserves TikTok’s revenue, supports American content creators, and maintains advertising income.
- Political support: TikTok remains an important platform for Trump’s followers and younger voters, reinforcing his political influence.
- International relations: Chinese President Xi Jinping reportedly gave approval, showcasing a pragmatic US-China compromise.
- Business strategy: Trump’s deal-making approach emphasises American investors and national interests while keeping TikTok accessible.
Investors and US operational control
Oracle’s involvement ensures the app’s security and cloud infrastructure is managed by US companies. Silver Lake, MGX, and other American investors collectively hold 45 per cent ownership, creating a majority US-controlled entity. ByteDance retains less than 20 per cent and only one board seat, limiting Chinese influence. Prominent figures like Rupert Murdoch, Lachlan Murdoch, and Michael Dell are also reportedly involved, strengthening the perception of US oversight and accountability.
The TikTok deal safeguards American user data, maintains a vital social media platform, and addresses bipartisan security concerns. It resolves years of uncertainty over TikTok’s US presence while setting a precedent for handling foreign tech ownership and data privacy. By creating a US-led entity, the deal demonstrates how national security, economic interests, and diplomacy can intersect in the tech industry, with potential implications for other foreign-owned platforms.
The divestiture process is expected to be completed within the 120-day window outlined in Trump’s executive order. Regulatory bodies will continue monitoring the platform to ensure compliance with US security standards. The deal could serve as a model for future cases where foreign ownership of critical tech platforms intersects with national security concerns, reinforcing American control over sensitive data while keeping popular services available to US users.
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