Trump Signs Executive Order on TikTok Deal

TikTok's U.S. Operations Approved for Sale to American Investors

An executive order signed by President Donald Trump effectively authorizes the sale of TikTok’s U.S. assets to a group of American investors. This action is intended to maintain the functionality of the social media application within the country.

Deal Valuation and Background

Vice President JD Vance indicated that the transaction is estimated to value TikTok US at approximately $14 billion. The necessity for this divestiture stemmed from a national security law initially enacted by former President Joe Biden, which mandated either a sale of the U.S. business or a ban on the app.

President Trump’s order temporarily prevents the attorney general or the Department of Justice from enforcing the aforementioned law for a period of 120 days. This pause allows for the execution of the proposed divestiture plan.

ByteDance's Response and Chinese Approval

While ByteDance, TikTok’s parent company, has not yet issued a public statement regarding the deal or the executive order, they did release a statement on September 19th. It affirmed their commitment to “work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok U.S.”

President Trump has stated that he received approval from China’s President Xi Jinping. He reported having a positive conversation with President Xi, informing him of the planned sale, and receiving a supportive response.

Key Terms of the Agreement

The executive order stipulates that TikTok’s U.S. operations will establish a new board of directors. Crucially, the app’s recommendation algorithm, source code, and content moderation system within the U.S. will be transferred under the control of its new ownership.

Under the terms of the agreement, Oracle will be responsible for overseeing the app’s security infrastructure and providing essential computing services for TikTok US.

Ownership and Security Concerns

President Trump emphasized that the app will be “owned by Americans, and very sophisticated Americans,” and will be “American operated all the way.” He indicated that Oracle is among the U.S. investors, but refrained from disclosing the complete list of new owners.

According to CNBC reports, Oracle, Silver Lake, and MGX, based in Abu Dhabi, are poised to acquire a 45% stake in TikTok’s U.S. company.

Addressing Data Security and Content Bias

Vance asserted that the deal will enhance user confidence in TikTok. He believes that user data will be more secure and the platform will no longer be susceptible to use as a tool for propaganda, as it allegedly has been in the past.

When questioned about potential algorithmic bias, President Trump assured that “every group, every philosophy, every policy will be treated fairly.” This statement came in response to a query regarding the display of MAGA-related content following the completion of the sale.

Timeline and Previous Actions

Last week, President Trump signed an executive order extending ByteDance’s deadline to divest TikTok’s U.S. operations. This represents the fourth extension granted to the company.

The initial push to ban TikTok originated with President Trump in 2020. The initiative subsequently garnered bipartisan support during the Biden administration.