Trump approves TikTok deal through executive order, Vance says business valued at $14 billion

In a significant move, President Donald Trump has authorized an executive order that greenlights a deal aimed at keeping TikTok operational within the United States. Vice President JD Vance confirmed the deal values the company at around $14 billion. This executive order addresses national security concerns by mandating that ByteDance, the Chinese parent company, must divest its U.S. operations or face an outright ban. The proposed arrangement involves the creation of a new joint-venture entity that will manage TikTok's U.S. business, with ByteDance retaining less than a 20% ownership stake. Key investors in this new company include industry giants Oracle, Silver Lake, and the Abu Dhabi-based MGX investment fund, who together will hold approximately 45% of the joint venture, while other ByteDance investors will control the remaining 35%. Notably, no representatives from ByteDance were present during the executive order signing, and the company has yet to confirm the transaction. Trump stated that Chinese President Xi Jinping has approved the deal, though Vance indicated there was some pushback from the Chinese government prior to reaching this agreement. Under the new framework, Oracle is set to manage TikTok's security operations and will continue to offer cloud services to the U.S. branch of TikTok, according to sources familiar with the situation. The President emphasized that the new ownership structure will ensure that TikTok is predominantly American-operated. "It's owned by Americans, and very sophisticated Americans," Trump stated, adding that Oracle's CEO Larry Ellison is part of the ownership group. Investors such as General Atlantic, Susquehanna, and Sequoia are expected to contribute equity to this new TikTok entity. White House Press Secretary Karoline Leavitt previously highlighted that this deal ensures TikTok will be primarily owned by Americans and that the U.S. will retain control over the app's recommendation algorithm. Importantly, the agreement does not involve the federal government acquiring an equity stake in TikTok's U.S. operations. Additionally, Trump recently signed an order extending ByteDance's deadline for divestiture, aimed at preventing the Department of Justice from enforcing penalties against app stores and internet service providers associated with TikTok's U.S. operations.