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TikTok’s future in the United States has been in question for years, and now a deal backed by President Donald Trump has given the app a lifeline. An executive order signed by Trump effectively clears the way for the sale of TikTok’s American business to a group of US investors. The order suspends enforcement of a previous law that could have banned the app, buying 120 days for the divestiture plan to close.
Good to Know
The roots of the conflict go back to 2020, when Trump first raised concerns about TikTok’s Chinese ownership under ByteDance. Later, the Biden administration signed legislation demanding TikTok divest its US operations or face a ban. Trump’s new order marks a reversal, allowing the app to keep running under new ownership while claiming a stronger security setup.
ByteDance has stayed mostly quiet on the deal, but the company issued a short statement on September 19 saying it “will work in accordance with applicable laws to ensure TikTok remains available to American users through TikTok U.S.”
Under the agreement, TikTok US will install a new board of directors, with its recommendation algorithm, moderation system, and source code moving under American control. Oracle, already a trusted partner in US government contracts, will handle the platform’s data security and cloud services.
Trump told reporters, “It’s owned by Americans, and very sophisticated Americans. This is going to be American operated all the way.”
Reports from CNBC suggest that Oracle, Silver Lake, and Abu Dhabi-based MGX will collectively hold about 45% of TikTok US. Trump confirmed Oracle’s involvement but avoided giving the full list of new investors.
In a briefing, Trump said he discussed the matter directly with China’s President Xi Jinping.
“I spoke with President Xi; we had a good talk,” Trump said. “I told him what we were doing, and he said, ‘Go ahead with it.’”
That conversation appears to have reduced diplomatic friction, which has long been a sticking point in discussions about TikTok’s ownership and data access.
Vice President JD Vance said the transaction boosts public trust in the platform. “This deal really does mean Americans can use TikTok but actually use it with more confidence than they had in the past because their data is secure and it won’t be used as a propaganda weapon like it has in the past,” he explained.
Vance’s remarks reflect broader political concerns that TikTok’s data could be misused by foreign governments.
Reporters pressed Trump on whether TikTok’s recommendation engine might favor MAGA-related content once US investors take over. Trump responded that “every group, every philosophy, every policy will be treated fairly.”
This executive order marks the fourth extension of ByteDance’s deadline to divest. Trump initially threatened a ban years ago, but the issue gained bipartisan support under Biden, highlighting how both parties view TikTok as a security challenge. Now, with this new structure in motion, TikTok is expected to remain part of American digital life—under closer watch.