President Donald Trump signed an executive order this Thursday, saving TikTok from an imminent ban. The platform, boasting 170 million users in the U.S., is now transitioning to a consortium of non-Chinese investors who will control 80% of its operations.
El presidente Trump firmó una orden ejecutiva que oficializa el acuerdo sobre TikTok, salvando la plataforma y poniéndola bajo control mayoritario estadounidense. EE. UU controlará el algoritmo y el Partido Comunista Chino ya no lavará las mentes de los estadounidenses. pic.twitter.com/njsmz2Wybg
— James Nava (@JamesNavaCom) September 26, 2025
ByteDance, its Chinese parent company, retains less than 20%, specifically 19.9%, along with a single seat on the board of directors. The valuation of the new U.S.-based TikTok reaches $14 billion, as confirmed by Vice President J.D. Vance during the White House ceremony.
Though controversial for being lower than previous estimates of up to $40 billion, this price reflects Trump’s commitment to national security without compromising innovation. Trump, who credits part of his 2024 electoral victory to TikTok—where he has amassed 15 million followers—hailed the deal as «the art of the deal.»
«It’s run by Americans, and very sophisticated ones,» the president declared, emphasizing Oracle’s critical role in managing the algorithm and data security.
The crisis traces back to April 2024, when then-President Joe Biden signed a bipartisan law mandating that ByteDance divest 80% of TikTok’s U.S. operations or face a total shutdown due to national security risks.
The legislation, passed with broad congressional support, highlighted concerns over Chinese access to user data and the potential manipulation of the algorithm for propaganda purposes. Biden feared that the Chinese Communist Party might use TikTok to spy on American citizens or influence elections.
The law took effect in January 2025, but upon beginning his second term, Trump extended the deadline multiple times: first by 75 days, then 90, and most recently to December 16. These extensions facilitated intense negotiations with Beijing.
The turning point came in September 2025. Following a productive call between Trump and President Xi Jinping on September 19, both leaders finalized a framework agreement. Trump announced progress on trade, fentanyl, and TikTok approval via Truth Social. Xi, in turn, stressed a «fair environment» for Chinese investments but conceded on the divestiture.
Negotiations included rounds in Madrid, where Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng aligned their positions. China, which controls algorithm exports, agreed to license a version for the U.S. edition, retrained under Oracle’s oversight to eliminate any ByteDance influence.
Oracle, led by billionaire Larry Ellison—a Trump ally and briefly the world’s richest man—will take charge of the algorithm and store data in U.S. clouds. Ellison, who financially backed Trump’s campaign, will ensure no leaks to China. «Oracle will play a very big role,» Trump affirmed.
Silver Lake, a private equity firm, and MGX—a Abu Dhabi-based AI-focused investment fund—round out the core investor group with nearly 45% of the stake. Other potential participants include Michael Dell, CEO of Dell Technologies; Rupert Murdoch and his son Lachlan of Fox Corp.; and funds like General Atlantic, Susquehanna, and Sequoia, which already invest in ByteDance but will transfer equity to the new entity.
The structure is clear: a joint venture headquartered in the U.S., a seven-member board—six American cybersecurity experts—and ByteDance’s exclusion from the security committee. The remaining 35% comes from existing and new investors, further diluting Chinese control. There’s no «golden share» for the federal government, but independent audits are mandated.
This deal meets the «qualified divestiture» requirements of the 2024 law, pausing its enforcement for 120 days. During this period, paperwork will be finalized, Chinese approval secured, and assets from related platforms like Lemon8 and CapCut transferred. Global users will retain cross-access to content, but U.S. data will remain isolated.
This marks a triumph for the Trump administration. It safeguards the free speech of millions of young people—many MAGA voters—while expelling the influence of the Chinese Communist Party, accused of censorship and espionage. Trump reverses the left’s hypocrisy: Biden signed the law, but his Department of Justice failed to enforce it firmly, prioritizing woke agendas over security.
Risks remain. Republican critics like Senators Brett Guthrie and Gus Bilirakis demand vigilance to prevent «CCP influence.» Experts like Alan Rozenshtein from the University of Minnesota question whether ByteDance truly loses algorithm control. China could delay approvals if trade tensions escalate.
Nevertheless, the agreement strengthens Trump’s stance against Xi. He announced a 2026 visit to China and a meeting at the APEC summit in South Korea. It’s a step toward balancing trade, curbing fentanyl, and pushing for peace in Ukraine, all while prioritizing «America First.»
In reflection, this TikTok rescue is more than a lifeline for an addictive app; it’s a lesson in conservative leadership. Trump, with shrewd negotiation, avoided the chaos of a ban that would have silenced young voices and harmed content jobs.
Yet he sharply criticizes the left’s naivety, which allowed ByteDance to infiltrate U.S. data for years under the guise of «global diversity.»
Today, with American control, TikTok can evolve into a free platform, not a Peking weapon. The true victory lies in remembering: in the Trump era, national security isn’t negotiated with dictatorships—it’s imposed.
Will we stay vigilant, or let the left weaken our digital defenses once again?
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