Trump Signs Executive Order on TikTok Deal
In the United States, Donald Trump has signed an executive order approving a deal over TikTok. Control will shift to U.S. investors, while ByteDance will retain a 19.9% stake.
Main Terms of the Deal
Under the agreement, the ownership structure of “TikTok USA” is as follows:
| Investors | Stake |
|---|---|
| Oracle, Silver Lake, MGX | ≈ 45% |
| ByteDance (via General Atlantic, Susquehanna, etc.) | 35% |
| ByteDance Ltd. (direct ownership) | 19.9% |
The process must be finalized within 120 days. During this period, the U.S. Department of Justice will not impose penalties or sanctions on companies associated with TikTok.
Legal Basis
The deal is carried out under the Protecting Americans from Foreign Adversary Controlled Applications Act, passed by Congress in 2025. The law is aimed at safeguarding American user data from access by foreign entities considered “hostile.”
The law’s implementation had previously been delayed multiple times by presidential orders to allow negotiations and solutions to be worked out. The final decision was secured by the September 25, 2025 executive order.
What “Qualified Divestiture” Means
The law includes the concept of a “qualified divestiture.” In practice, this means:
- control over TikTok no longer belongs to foreign investors;
- the algorithms and source code are managed by a new U.S.-based legal entity;
- U.S. user data is stored in cloud services run by American companies;
- trusted American security partners oversee updates and algorithm management.
Reasons for Strict Measures
According to the White House, TikTok is used by about 170 million Americans. The app has become not only an entertainment platform but also a source of income for creators and a key marketing tool for businesses.
The concern, however, was that the platform remained under the control of ByteDance Ltd., headquartered in China. U.S. national security agencies raised alarms about the potential transfer of user data to foreign entities.
Key Security Guarantees
- Foreign ownership in the new company is capped at less than 20%.
- Content moderation and algorithm oversight are entirely under U.S. control.
- All data storage and processing take place on U.S. soil.
- TikTok algorithms related to U.S. users will be retrained and remain under constant monitoring.
Role of the Department of Justice
The Department of Justice has been instructed not to enforce the law for 120 days while the deal is completed. The Attorney General will serve as the official U.S. representative within the new structure.
Additionally, investors are required to coordinate terms with the Committee on Foreign Investment in the United States (CFIUS), ensuring that their economic interests align with national security priorities.
Conclusion
The new TikTok ownership structure ensures that Americans can continue using the app while U.S. authorities gain control over critical operations. The deal simultaneously addresses security concerns and preserves access to a platform relied on by millions of Americans.