Trump Approves TikTok Deal, Paving Way for U.S. Operations
Omar RahmanPresident Donald Trump signed an executive order Thursday approving a $14 billion deal that would keep TikTok operating in the United States. The agreement creates a new joint venture structure where Chinese parent company ByteDance would retain less than 20% ownership, while American investors take majority control of the popular video app's U.S. operations.
The deal addresses national security law requirements that forced ByteDance to either sell its U.S. operations or face an effective ban. Oracle, private equity firm Silver Lake, and Abu Dhabi-based investment fund MGX emerge as the primary investors, controlling roughly 45% of the new entity. Existing ByteDance investors would hold about 35%.
But here's where it gets complicated. No ByteDance representatives attended Trump's signing ceremony, and the Chinese company hasn't announced any ongoing deal. China still needs to approve the arrangement, and there's no indication Beijing has made the necessary legal changes to allow the sale.
Trump claims Chinese President Xi Jinping gave the green light, while Vice President J.D. Vance acknowledged China showed "some resistance" before the agreement. The disconnect raises questions about whether this deal actually exists beyond the executive order.
**The structure and the stakes**
Oracle would handle app security operations and continue providing cloud computing services to the new American TikTok entity. CEO Larry Ellison joins the ownership group, along with potentially media mogul Rupert Murdoch and his son Lachlan, plus Dell Technologies CEO Michael Dell.
The arrangement means American companies would control TikTok's recommendation algorithm - the secret sauce that keeps users scrolling for hours. This addresses longstanding U.S. concerns about Chinese access to American user data and potential content manipulation.
For investors, the numbers look attractive. TikTok's U.S. operations generated an estimated $16 billion in revenue last year, making a $14 billion valuation potentially reasonable. But the regulatory uncertainty creates real risk.
**What happens next**
The executive order prevents the Justice Department from enforcing the national security law that would penalize Apple, Google, and internet providers for supporting TikTok. This gives the deal breathing room while details get worked out.
Trump's move extends the deadline ByteDance faced under legislation signed by former President Joe Biden. The original law would have effectively killed TikTok in America by forcing app stores and web hosting services to drop support.
The bigger question is whether China will actually allow its most successful global tech export to fall under American control. Beijing has historically blocked similar deals and recently tightened rules around technology transfers.
For TikTok's 170 million American users, the immediate impact is simple - the app keeps working. But the long-term implications depend on whether this announced deal becomes reality or remains political theater while negotiations continue behind the scenes.
The timing matters too. Trump gets to claim he "saved TikTok" while addressing national security concerns that have bipartisan support in Washington. Whether the complex ownership structure actually satisfies those security worries remains to be seen.
