President Donald Trump signed a decree on Thursday formalizing the transfer of TikTok’s U.S. operations to a group of investors largely composed of his political and business allies. Under the terms of the deal, the Chinese parent company ByteDance will retain only a minority stake, less than 20%.
The stated goal of this restructuring is to preserve Americans’ access to the app while addressing concerns over data security.
Speaking from the Oval Office, the Republican president outlined the agreement, assuring the public that the platform would not be subject to any “partisan agenda.” Among the new stakeholders are influential business figures close to Trump, including Larry Ellison (Oracle), Michael Dell (Dell Technologies), and Rupert Murdoch (News Corp). Investment firms Silver Lake Partners and Andreessen Horowitz are also reportedly involved.
“Every group, every philosophy, every political view will be treated fairly,” he stated, joking that if it were up to him, he would have made the app “100% MAGA.
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The U.S. version of TikTok will include a copy of the original algorithm, widely considered the key to the platform’s success. It will be managed independently, according to Vice President JD Vance, a former venture capitalist who led the deal. The U.S. entity is expected to be valued at approximately $14 billion.
“Our fundamental goal was to keep TikTok running in the U.S. while ensuring the protection of Americans’ personal data,” Vance said.
The deal comes in response to a 2024 law passed by the U.S. Congress, which required TikTok to sever ties with ByteDance or face a nationwide ban. Lawmakers had raised concerns about potential Chinese access to user data or manipulation of the algorithm for influence.
Trump extended the deadline several times to allow for negotiations. According to the decree signed Thursday, the new cutoff date is January 23, 2026.
The president also claimed that Chinese President Xi Jinping had approved the deal during a recent phone call.
“I have great respect for President Xi, and I truly appreciate his support for this agreement. We really needed China’s approval to move forward,” Trump explained.
China’s Ministry of Foreign Affairs responded cautiously, urging the U.S. to maintain a fair environment for Chinese companies.
“We hope the United States will offer an open, fair, and non-discriminatory business environment for Chinese enterprises investing in the U.S.,” said ministry spokesperson Guo Jiakun.
