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| Not a real image of Trumpt signing Tiktok Ownership Order |
It finally happened: TikTok, one of the most popular apps in the US, is getting a new home. On Thursday, President Donald Trump signed an executive order that will transfer TikTok’s American operations from its Chinese parent company, ByteDance, to a group of US investors.
The move puts an end—at least for now—to months of legal battles, political debates, and user anxiety over whether the app would be banned entirely. Trump himself described the deal as a way to “save TikTok” for the 180 million Americans who use it daily, especially younger audiences who pressured the White House to keep the app alive.
What the Deal Looks Like
At a press conference in Washington, Trump revealed that he had spoken directly with China’s President Xi Jinping about the deal. “I spoke with President Xi and he said, ‘Go ahead with it,’” Trump said. “This is going to be American-operated all the way.”
Here’s what the agreement includes:
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Ownership Split: US investors will own around 65% of the new American TikTok company. ByteDance and other Chinese investors will hold less than 20%.
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Valuation: The new US TikTok will be valued at about $14 billion, far lower than ByteDance’s overall ~$330 billion. For comparison, Meta (the parent of Facebook and Instagram) is worth around $1.8 trillion.
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Governance: A seven-member board will oversee the new company, including cybersecurity and national security experts—six of whom will be American.
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Data & Algorithm: US software giant Oracle will oversee TikTok’s US operations and cloud storage. It will also hold a license to control TikTok’s powerful recommendation algorithm. According to the White House, Chinese officials will not have access to American user data.
Along with Oracle, other major names are involved. Trump listed Rupert Murdoch and Michael Dell as investors, calling them “great investors, the biggest. They don’t get bigger.”
A Political Victory for Trump
The president has been vocal about TikTok’s role in his political success. He credited the app with helping him win the 2024 election by reaching younger voters. At the press conference, he also took a light jab at the platform’s content:
“I always like MAGA-related. If I could, I’d make it 100% MAGA-related,” Trump joked, before reassuring that TikTok would continue recommending a wide variety of content. “Every group will be treated fairly.”
Trump named the new directive the “Saving TikTok” executive order, emphasizing that it resolves US national security concerns. Congress had previously passed a law forcing ByteDance to divest or face a total ban, a decision later upheld by the Supreme Court in January.
The divestiture process is expected to take about 120 days.
Fees, Taxes, and the “Deal-Making”
Earlier this month, Trump hinted that the government would collect what he called a “fee-plus” from investors as part of the negotiation. But on Thursday, he backtracked, saying instead that the US would benefit through tax revenues from the new company:
“We’re gonna make money and we’re going to get a lot of money in taxes,” Trump said.
The new company’s estimated $14 billion valuation means its tax footprint could indeed be significant—though still modest compared to giants like Apple or Meta.
A Long Road to This Deal
TikTok’s fate has been uncertain for years. Lawmakers on both sides of the aisle raised alarms about its Chinese ownership, warning that the app could be used for data collection or propaganda. ByteDance denied the allegations, but pressure mounted until Congress voted overwhelmingly to force a sale.
The Trump administration delayed enforcement several times, keeping users guessing. Behind the scenes, negotiations with Beijing were tense. Last week, US Treasury Secretary Scott Bessent and China’s top trade negotiator Li Chengang met in Madrid, where they confirmed a framework for the deal. Li also warned the US against “suppression” of Chinese companies.
Trump credited conservative activist Charlie Kirk, who passed away earlier this month, for encouraging him to join TikTok in the first place. “Charlie helped me a lot too. He said, ‘You should go on TikTok,’” Trump said.
What This Means for TikTok Users
For now, TikTok isn’t going anywhere. The app will continue to operate in the US, though under new management and rules. Experts say users probably won’t notice big changes in the short term—the videos, creators, and trends will remain the same.
But the deal does give US investors significant new influence over the platform’s direction. With a board stacked with cybersecurity experts, tighter data rules, and American companies at the helm, TikTok’s future in the US will look very different from its past.
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