President Donald Trump has signed an executive order approving the sale of TikTok’s U.S. operations to an American investor group, ensuring the popular app remains operational in the country.
The deal, valued at around $14 billion, comes after TikTok was ordered to divest its U.S. business or face a nationwide ban under a national security law originally signed by former President Joe Biden.
Trump’s order blocks the Justice Department from enforcing the law for 120 days while the divestiture plan is executed. The new arrangement will create a TikTok U.S. board of directors and transfer control of the app’s recommendation algorithm, source code, and content moderation system in the U.S. to its new American owners. Oracle will oversee TikTok’s U.S. security operations and provide cloud services for the platform.
Vice President JD Vance said the agreement ensures TikTok data is secure and won’t be used for propaganda. “This deal really does mean Americans can use TikTok but actually use it with more confidence than they had in the past,” he said. Trump added, “It’s owned by Americans, and very sophisticated Americans. This is going to be American-operated all the way.” CNBC reports that Oracle, Silver Lake, and Abu Dhabi-based MGX will take a 45 percent stake in TikTok’s U.S. entity, though the full list of new owners has not been disclosed.
TikTok’s parent company ByteDance, has not officially confirmed the deal but recently stated it will comply with applicable laws to ensure TikTok remains available for American users. The move follows years of political battles over TikTok’s ownership, starting with Trump’s first attempts to ban the app in 2020 and later receiving bipartisan backing during Biden’s administration. Consumers will now watch closely as TikTok U.S. transitions to its new structure under American control.
If this article helped you, please consider supporting our work. Every small contribution keeps Abijita.com independent and running.
