President Donald Trump signed an executive order on Thursday, officially sanctioning a proposal that will allow TikTok to continue operating in the U.S. According to Vice President JD Vance, the transaction pegs the social media platform’s value at $14 billion.
The executive order confirms that the new arrangement satisfies the mandate of a national security law, requiring China-based ByteDance to either sell its TikTok U.S. operations or risk an effective ban. Under the proposed terms, which are still contingent on China’s approval, a new joint entity will manage the U.S. business, with ByteDance retaining a minority stake of less than 20%, CNBC reported.
Reports revealed that enterprise tech giant Oracle, Silver Lake and the Abu Dhabi-based MGX investment fund will be main investors in TikTok’s U.S. business, controlling a roughly 45% stake in the entity, while ByteDance investors and new holders will own 35%.
Representatives from ByteDance were noticeably absent from the signing ceremony, and the company has yet to publicly acknowledge the transaction. Crucially, the final purchase price for the deal was not disclosed, and there is no indication that the Chinese government has amended the laws necessary for the sale to proceed.
President Trump said Chinese President Xi Jinping gave the deal the go ahead. Vance said the Chinese government put up some resistance before the agreement.
Under the planned arrangement, Oracle will oversee the app’s security operations and continue providing cloud computing services for the new TikTok U.S. firm, Faber reported, citing sources familiar with the deal. Trump said Oracle CEO Larry Ellison is involved in the ownership group and that his company is “playing a very big part.”
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“It’s owned by Americans, and very sophisticated Americans,” Trump said at the signing. “This is going to be American operated all the way.”
Sources informed CNBC that major ByteDance investors, including General Atlantic, Susquehanna, and Sequoia, are anticipated to provide equity financing for the new TikTok U.S. entity. The agreement comes amid wide valuation gaps: ByteDance itself was reportedly valued at $330 billion last month, while analysts previously estimated the U.S. operations alone were worth between $30 billion and $35 billion.
The deal does not involve the federal government taking an equity stake or a so-called golden share in TikTok’s U.S. operations, CNBC reported Monday.
Trump said over the weekend that conservative media baron Rupert Murdoch and his son Lachlan Murdoch could be involved in the TikTok deal as well as Ellison and Dell Technologies CEO Michael Dell
The president last week signed an executive order that extended ByteDance’s deadline to divest TikTok’s U.S. operations or be subject to a national security law originally signed by former President Joe Biden.
The order prevents the Department of Justice from enforcing the national security law until Dec. 16. That law would penalize app store operators like Apple and Google and internet service providers for providing services to TikTok’s U.S. operations.
