Trump Signs $14 Billion TikTok Sale to U.S. Investors in Historic Security Deal

Trump Signs $14 Billion TikTok Sale to U.S. Investors in Historic Security Deal

Washington, D.C. — September 26, 2025 — In a landmark move to safeguard American user data and resolve long-standing national security concerns, U.S. President Donald Trump has signed an executive order approving the $14 billion sale of TikTok’s U.S. operations to a consortium of American and allied investors.

The newly formed U.S.-based company will be majority controlled by domestic stakeholders, led by Oracle, Silver Lake, and MGX, an Abu Dhabi royal family–linked fund. Together, these investors will hold about 45% ownership in the new entity. ByteDance, TikTok’s Chinese parent, will retain less than 20% of shares and just one seat on a seven-member governing board.

A crucial element of the deal is the recommendation algorithm. Under Trump’s order, the algorithm must be retrained and overseen by U.S. data and security experts to prevent any foreign access. This satisfies the 2024 Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which required ByteDance to divest TikTok’s U.S. arm or face a nationwide ban.

The White House has set a 120-day deadline for finalizing the deal, securing regulatory approvals, and implementing a robust data-governance system. During this period, TikTok will continue operating normally while American and Chinese regulators review the agreement.

Why $14 Billion Instead of $30–40 Billion?

Market analysts previously valued TikTok’s U.S. business at $30–40 billion, largely because of its global algorithm and ad infrastructure. However, since this agreement excludes full proprietary control over the global algorithm, the final valuation was reduced to $14 billion.

Key Investors and International Dynamics

Reports confirm that MGX will acquire a 15% stake and a board seat, while Oracle and Silver Lake remain the lead U.S. investors. Notably, figures like Michael Dell and Rupert Murdoch are also expected to participate in the consortium.

President Trump stated he personally discussed the plan with Chinese President Xi Jinping, who gave his approval to the proposed structure. Analysts view this as a significant diplomatic concession from Beijing, aimed at easing pressure over TikTok while stabilizing U.S.-China relations.

Criticism and Concerns

Supporters hail the deal as a watershed moment in U.S. digital-security policy, protecting millions of American users from potential surveillance. But critics caution that even a sub-20% ByteDance stake leaves room for indirect influence. Lawmakers are demanding strict transparency on algorithm governance and advertising data access.

Technology experts also warn of operational challenges: separating sensitive data, retraining the algorithm, and ensuring uninterrupted user experience will test the new entity’s technical capacity.

Global Implications

This sale sets a powerful precedent for how the U.S. may handle other foreign-owned digital platforms. It underscores Washington’s willingness to assert digital sovereignty and could influence policy debates across Europe, Asia, and beyond.

For everyday TikTok users, the app may look unchanged—videos, creators, and trends will continue—but behind the scenes, the platform is undergoing a radical transformation. The coming months will reveal whether this new U.S.-controlled TikTok can meet both national security demands and market expectations without losing its global appeal.