U.S. President Donald Trump has signed an executive order to separate TikTok’s U.S. business from its Chinese parent company, ByteDance. The deal values TikTok US at approximately 14 billion USD.
As he signed the executive order in the Oval Office on Thursday, Trump stated that the details would be finalized within 120 days.
The new ownership structure will see Oracle Corporation, private equity firm Silver Lake, and Abu Dhabi’s sovereign wealth fund MGX securing about 45% of the company, while ByteDance retains a 19.9% stake. Existing U.S. investors General Atlantic and Susquehanna will maintain their involvement.
U.S. Vice President JD Vance described the deal as a structure that balances investor protection and national security. He acknowledged some resistance from the Chinese side but affirmed that negotiations would continue.
At the heart of the agreement is Oracle’s role in managing TikTok’s algorithm and content moderation. Oracle founder Larry Ellison will be a key figure in TikTok US, overseeing data security and the recommendation system. The White House clarified that the Chinese side has agreed to license the algorithms and intellectual property to the U.S. entity.
The involvement of Abu Dhabi’s MGX fund may face opposition in Congress. Some hardline lawmakers have pushed for a complete TikTok ban or full separation from ByteDance. However, Trump defended the deal, emphasizing its benefits for U.S. investors and its alignment with national security interests.
Ellison has been expanding his media and entertainment portfolio, recently acquiring Paramount Global and pursuing the acquisition of Warner Bros. Gaining control of TikTok US could potentially lead to the creation of a massive platform spanning social media, Hollywood, sports, and news.
TikTok currently boasts 170 million monthly active users and 65 million daily active users in the United States, surpassing Snapchat’s North American daily user base of 98 million. Interestingly, TikTok’s market valuation is set at 14 billion USD, comparable to that of Snap.
