President Donald Trump has signed a pivotal executive order on Thursday, September 26, 2025, paving the way for an American-led consortium to acquire TikTok’s U.S. operations and avert a nationwide ban. The order signifies a major development in the protracted battle over the popular social media app, aiming to satisfy national security concerns that have loomed over its ownership by China’s ByteDance.
Deal to Ensure U.S. Control and Data Security
The executive order declares that a proposed divestiture plan meets the requirements of the “Protecting Americans from Foreign Adversary Controlled Applications Act,” a law passed by Congress in 2024 that mandated ByteDance sell its U.S. assets or face a ban by early 2025. The deal, which has received presidential approval and a 120-day extension to be finalized, ensures that TikTok’s U.S. application will be operated by a new joint-venture company based in the United States. This new entity will be majority-owned and controlled by U.S. persons, with ByteDance and its affiliates retaining less than 20 percent ownership.
Key investors reportedly involved in this U.S.-based venture include tech giant Oracle, alongside firms like MGX and Silver Lake. Prominent figures such as Oracle co-founder Larry Ellison, media mogul Rupert Murdoch, and Dell Technologies founder Michael Dell have also been named as potential participants. The new U.S. company is valued at approximately $14 billion, a figure significantly lower than ByteDance’s overall estimated valuation of around $330 billion.
Addressing National Security and Data Privacy
Years of bipartisan concern in the USA have centered on the potential for the Chinese government to leverage TikTok for data collection, influence operations, or propaganda. The executive order aims to neutralize these risks by placing the operation of TikTok’s algorithms, code, and content moderation decisions under the control of the new U.S. joint venture. Furthermore, U.S. user data will be stored in a cloud environment managed by an American company, with stringent monitoring of software updates and data access.
Vice President J.D. Vance emphasized the administration’s goal: “We wanted to keep TikTok operating, but we also wanted to make sure that we protected Americans’ data privacy as required by law,” he stated at the signing ceremony. The move is intended to provide users with greater confidence that their data is secure and not being used for foreign manipulation.
A Significant Platform for News and Information
The implications of this deal are substantial, given TikTok’s growing role as a source of news and information for Americans, particularly younger demographics. A recent Pew Research Center analysis indicates that approximately 20% of U.S. adults regularly get their news from TikTok, a figure that has seen rapid growth since 2020. Among U.S. adults under 30, this number rises to about 43%, making it a critical platform for reaching younger audiences.
The potential shift in ownership and control has also raised discussions about the platform’s future content policies. While President Trump expressed a desire to make the American-controlled TikTok “100% MAGA” if possible, he also stated that “every philosophy, every policy” would be treated fairly.
A Path Forward and China’s Role
President Trump stated that he had secured approval for the deal from Chinese President Xi Jinping, describing their conversation as productive. This claim suggests a critical step in resolving potential Chinese government objections, as Beijing had previously signaled it would not passively accept a forced sale.
The executive order marks a significant step towards a final resolution, allowing TikTok to continue its operations in the USA while implementing measures to safeguard national security. The deal is expected to preserve thousands of U.S. jobs and contribute billions in economic activity over the coming years. As the intricate details of the divestiture are finalized over the next 120 days, the future of one of the world’s most influential social media platforms in the United States will be shaped by this new American-controlled structure.
