President Donald Trump has signed an executive order outlining the terms of a deal to transfer TikTok into American hands, ending months of uncertainty over the app’s future in the United States.
Speaking at a press conference on Thursday, Trump said he had reached an agreement with China’s president, Xi Jinping, to allow the social media platform to continue operating in the country, provided it was separated from its Chinese parent company, ByteDance.
“I spoke with President Xi and he said, ‘Go ahead with it,’” Mr Trump told reporters. “This is going to be American-operated all the way.”
Under the arrangement, a consortium of US investors will assume control of TikTok’s American operations and take charge of a licensed version of its recommendation algorithm. According to the White House, American companies will own about 80 per cent of the new entity, while ByteDance and Chinese investors will retain less than 20 per cent. Governance will rest with a seven-member board of directors, six of whom will be American experts in cybersecurity and national security.
The new company is expected to be valued at $14bn, far below ByteDance’s overall valuation of around $330bn.
The group of investors is led by Oracle, which will oversee TikTok’s US operations, provide cloud services for data storage, and hold a licence for the algorithm. Other investors include Oracle co-founder Larry Ellison, media proprietor Rupert Murdoch, and Dell Technologies chief executive Michael Dell. “Great investors. The biggest. They don’t get bigger,” Trump said.
JD Vance, who also addressed the press conference, confirmed that further details of the investment group would be released in the coming days.
When asked whether TikTok would prioritise Maga-related content, Trump replied: “I always like Maga-related. If I could, I’d make it 100% Maga-related.” However, he added that the platform would continue to recommend a broad range of content, saying: “Every group will be treated fairly.”
The deal brings to a close a period of legal and political wrangling over one of the most widely used apps in the United States, with an estimated 180 million users nationwide. Trump has credited TikTok with helping him secure victory in the 2024 presidential election.
The agreement also marks another step in the administration’s efforts to exert influence over the technology sector. Earlier this month, the government acquired a 10 per cent stake in Intel and has pressed companies such as Apple and Nvidia to increase domestic investment.
Trump had previously suggested that the government would receive a “fee-plus” from investors for brokering the deal, but on Thursday said revenue would come through standard taxation. “We’re gonna make money and we’re going to get a lot of money in taxes,” he said.
TikTok has long faced scrutiny in Washington over concerns about data privacy and allegations that Beijing could use the app to spread propaganda. Although the company has denied such claims, Congress voted last year to compel ByteDance to divest its US operations or face a ban. The Supreme Court upheld the legislation in January.
On his first day in office, Trump signed an order delaying enforcement of the ban. The new “Saving TikTok” executive order states that the divestiture complies with the law and resolves national security concerns. The transfer is expected to be completed within 120 days.
At the press conference,Trump said young people had urged him to “save TikTok” and credited the late conservative activist Charlie Kirk with encouraging him to join the platform.
Last week, US Treasury Secretary Scott Bessent announced that Washington and Beijing had reached a framework agreement on TikTok following talks in Madrid. China’s top trade negotiator, Li Chengang, confirmed the deal but warned against what he described as American “suppression” of Chinese firms.
