On September 25, 2025, President Donald Trump signed a significant agreement that permits TikTok to remain in the US under American led leadership.
The deal complies with a 2024 national security rule that required China based ByteDance to sell off TikTok's US operations or risk being banned.Oracle, Silver Lake, and the Abu Dhabi-based MGX fund will jointly own around 45% of the new US controlled business that is created by the purchase.
ByteDance still owns less than 20% of the company. This action involves well known US investors, resolves national security issues, protects American users' data, and maintains accessibility to the wildly popular app.
Under the agreement, TikTok's US activities would be managed by a joint venture.
Oracle, under the leadership of CEO Larry Ellison, will supervise app security and offer cloud services, indicating robust US operational control.
MGX and Silver Lake will also be significant investors.
The new TikTok US board of directors will have six American appointed members, while ByteDance will retain a minority ownership of less than 20% and only one board position.
Current ByteDance investors like KKR, General Atlantic, and Susquehanna International Group continue to own shares.
The new organisation is fully operating under American jurisdiction, and the US operation is valued at an estimated $14 billion.
ByteDance was forced to sell its US operations by the 2024 law because of worries about Chinese access to customer data in the US.
With over 170 million users in the US, TikTok is popular among younger audiences, raising serious concerns about data protection.
Trump's executive order gives up to 120 days to finish the divestment and postpones the prohibition.
The agreement guarantees adherence to national security regulations while maintaining the platform's functionality in the US by establishing a US controlled company and retraining TikTok's recommendation algorithm under US supervision.
