Trump Approves TikTok Sale to U.S. Investors with Executive Order

President Donald Trump formally approved a deal on Thursday allowing a consortium of mostly U.S. investors to take over the short video app TikTok, signing an executive order that endorsed the spinoff while asserting the deal has “good controls” in terms of security and user safety.

TikTok is owned by Beijing-based ByteDance, but a law passed last year mandates that the company divest its U.S. operations, or the app will face a ban in the United States due to national security concerns. Trump’s executive order states that the proposed deal meets the “qualified divestiture” standards required by Congress, meaning that TikTok would no longer be controlled by a foreign adversary.

Under the agreement, ByteDance will retain less than 20 percent ownership of the new entity, which will be overseen by a board of directors bound by rules designed to protect Americans’ privacy.

“I have determined that the proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security,” the president wrote in the executive order.

Key Investors Named

At a White House signing event, Trump indicated that there would be “probably four or five” investors in the new venture. He specifically mentioned Larry Ellison of Oracle, media mogul Rupert Murdoch, and Michael Dell of Dell Technologies. Earlier in the week, a senior White House official confirmed that investment firm Silver Lake would also participate.

Vice President J.D. Vance, who has spearheaded efforts to broker the deal, told reporters that the company will be valued at approximately $14 billion, which he described as favorable for the investors involved.

When asked how U.S. user data would be protected, Vance offered limited details but assured that “the American entity and the American investors will actually control the algorithm,” adding, “We don’t want this used as a propaganda tool by any foreign government.”

TikTok Popularity and Security Concerns

TikTok has around 170 million U.S. users, approximately half the country’s population. Its widespread use, coupled with Chinese ownership, has raised concerns that the app could be exploited by the Chinese government to collect data on Americans or influence users with propaganda or disinformation.

The Protecting Americans from Foreign Adversary Controlled Applications Act, signed into law in April last year, deems apps run by foreign adversaries as posing “unacceptable national security risks.” The law requires such apps to shift ownership to U.S. entities to mitigate these risks.

The Supreme Court upheld the law despite TikTok’s free speech challenge, though Trump had previously signed executive orders pausing enforcement of the ban. His administration has been negotiating to ensure that control of the app shifts to American hands.

Shift in Trump’s Stance

The approval of the deal marks a notable shift for Trump, who attempted to shut TikTok down during his first administration. At the signing, he acknowledged being “a little bit prejudiced” in favor of the app, citing its role in boosting his support among young voters in the 2024 election.

U.S.-China Negotiations

The TikTok deal is intertwined with broader U.S.-China relations, including trade and tariff negotiations. Vance noted that there had been “some resistance on the Chinese side” in finalizing the agreement. Trump confirmed that he spoke with Chinese President Xi Jinping last week, who he said gave the “go-ahead” for the transaction.

Trump and Xi are scheduled to meet in roughly five weeks at an Asia-Pacific leaders’ summit in South Korea, with Trump planning a reciprocal visit to China next year. He noted that Xi will also visit the United States “at an appropriate time.”