President Donald Trump signed an executive order on Thursday, September 25th, approving a deal to keep TikTok operational in the United States, valuing the app’s U.S. business at $14 billion, according to Vice President J.D. Vance. The signing marks the latest development in a years-long conflict over data security and foreign ownership of the popular social media app. Analysts previously valued TikTok’s U.S. business at $30 billion to $35 billion. The revised estimate of $14 billion reflects how politics, regulation and national security concerns have reshaped the company’s future in the American market.
The deal establishes a new joint-venture business to manage TikTok’s U.S. operations. ByteDance, TikTok’s Beijing-based parent company, will own less than a 20% stake, with American investors holding a majority. Oracle, Silver Lake and Abu Dhabi-based MGX Fund collectively will own approximately 45% of the business, with ByteDance investors and new partners owning another 35%. Although the transaction is awaiting Chinese approval.
Oracle is hosting TikTok’s security operations and will still be providing cloud computing services, like storage and processing servers for TikTok. Trump noted Oracle CEO Larry Ellison is among the investors and is “playing a very big part.” He framed the partnership as a victory for American business and national security, claiming that it would protect U.S. data from foreign access.
Despite the announcement, some key details remain unclear. ByteDance has not confirmed that a transaction is taking place, as no formal purchase price was released. It also remains unclear whether the Chinese government will make the necessary legal changes for the arrangement to move forward. Vance acknowledged that Beijing initially opposed the proposal before ultimately allowing it to proceed.
The new order follows previous attempts to compel ByteDance to sell TikTok’s U.S. operations on national security grounds. A prior order gave ByteDance more time to comply, warning that in the absence of a sale, TikTok would essentially be banned. The legislation would punish companies such as Apple, Google and internet providers if they served TikTok in the U.S. without an agreement. The order delays enforcement until Dec. 16.
Though the government itself won’t hold a stake in TikTok, a roster of prominent investors may be involved. Alongside Ellison, Trump mentioned Rupert Murdoch, Lachlan Murdoch and Dell Technologies CEO Michael Dell as potential participants.
The executive order signals a temporary resolution to a long-running standoff between Washington and Beijing. It also shows how national security and economic interests continue to shape the fate of global technology companies. While the deal allows TikTok to remain active in the U.S., its future still depends on the shifting political priorities on both sides.