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White House officials announced earlier this week that TikTok had reached a preliminary deal to sell its U.S. operations to an American-based investor group.
President Trump signed the order on September 25, stating, “We have American investors taking it over, running it, highly sophisticated.”
Vice President JD Vance, who helped negotiate the deal, said it protects Americans’ data security and is beneficial for investors. The company will be valued at $14 billion.
Under the agreement, TikTok’s U.S. operations will be spun off to a new joint venture with majority American ownership. Oracle, a U.S.-based technology firm, will serve as the security provider for TikTok’s American operations.
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The arrangement would move TikTok’s algorithm under the control of the new U.S. joint venture. Oracle would monitor and inspect the algorithm to ensure it is not used for any malicious purposes.
U.S. officials from multiple administrations have expressed concerns that TikTok poses a national security threat, alleging ByteDance shares American user data with China. TikTok has repeatedly denied these claims.
Former President Joe Biden signed a law in 2024 banning TikTok in the U.S., unless Beijing-based parent company ByteDance divests its U.S. holdings. Trump extended the sell-or-ban deadline three times during his second term.
