Trump Approves TikTok Deal with Executive Order

President Donald Trump has officially signed an executive order that greenlights the sale of TikTok’s U.S. operations to a group of American investors, ensuring the popular social media app continues to function in the country. Vice President JD Vance announced that this deal values TikTok U.S. at approximately $14 billion. The executive order temporarily halts enforcement of a national security law that could have led to a ban on TikTok, allowing the divestiture plan to proceed over the next 120 days.

Details of the Executive Order

The executive order signed by Trump effectively prevents the Attorney General and the Department of Justice from enforcing a national security law that requires TikTok to divest its American operations or face a ban. This law was initially enacted by former President Joe Biden. The order allows TikTok to implement its divestiture plan, which is expected to be executed within the next four months. The new structure will include a board of directors for TikTok U.S., and control over the app’s recommendation algorithm, source code, and content moderation system will be transferred to its new American owners.

During a briefing with reporters, Trump emphasized the importance of American ownership, stating, “It’s owned by Americans, and very sophisticated Americans.” He expressed confidence that this arrangement would enhance the security of user data and ensure that the app operates independently of foreign influence.

Involvement of Oracle and Other Investors

Trump revealed that Oracle will play a significant role in the new ownership structure of TikTok U.S. The tech giant will oversee the app’s security operations and provide essential computing services. While Trump did not disclose the complete list of investors, reports indicate that Oracle, along with Silver Lake and Abu Dhabi-based MGX, will collectively hold a 45 percent stake in TikTok’s U.S. operations. This partnership aims to bolster user confidence in the platform, as Vice President Vance noted that the deal would secure user data and prevent the app from being used as a tool for propaganda.

The involvement of these prominent American companies is seen as a crucial step in addressing national security concerns surrounding TikTok, which has faced scrutiny over its ties to China and potential data privacy issues.

Reactions and Future Implications

The executive order has sparked various reactions, particularly regarding the implications for content moderation and algorithm transparency. Trump assured that the new ownership structure would treat all groups and philosophies fairly, responding to concerns about whether the algorithm would favor specific political content. This commitment to fairness is intended to reassure users that the platform will remain a neutral space for expression.

The deal marks a significant development in the ongoing saga of TikTok in the U.S., which began with Trump’s initial push to ban the app in 2020. The issue gained bipartisan support during Biden’s administration, highlighting the growing concerns over data security and foreign influence in American technology.

ByteDance’s Response and Next Steps

As of now, ByteDance, TikTok’s parent company, has not publicly commented on the executive order or the sale. However, they did release a statement on September 19, indicating their commitment to complying with applicable laws to ensure TikTok remains accessible to American users. The next steps involve executing the divestiture plan and establishing the new governance structure for TikTok U.S.

This executive order represents a pivotal moment in the relationship between American technology and foreign ownership, as the administration seeks to balance national security interests with the desire for continued access to popular digital platforms.

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