Is the TikTok saga in the United States close to a resolution? U.S. President Donald Trump has just issued an executive order approving a deal for the partial divestiture of TikTok’s American operations. This move finally allows the app to comply with the law passed in 2024 requiring its sale to a non-Chinese company, otherwise it would face prohibition in the country.
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A New Structure Involving Oracle and Silver Lake
Under the terms of the agreement, a joint venture will be established to handle TikTok’s U.S. operations. According to CNBC, the joint venture will include: Oracle, overseeing security operations and providing cloud services, Silver Lake, an American investment firm, and MGX, a fund based in Abu Dhabi.
ByteDance, TikTok’s Chinese parent company, will retain less than 20% of the equity. The new entity will be 45% owned by Oracle and its partners, while ByteDance investors and new shareholders will hold 35%. The TikTok algorithm, central to the negotiations, will be leased to American shareholders and revised and monitored
by Oracle.
A Downward Revision in Valuation
U.S. Vice President JD Vance stated that TikTok US would be valued at $14 billion, significantly less than earlier estimates. It is important to note that no representatives from ByteDance were present at the signing.
Until now, Beijing had refused to approve such a deal, but Trump claims to have received a verbal green light
from Chinese President Xi Jinping, following what he described as a good conversation
.
A 120-Day Countdown
The American law called the Protecting Americans From Foreign Adversary Controlled Applications Act, effective from January 2024, mandates that TikTok be sold to a non-Chinese entity or face a ban. While the app has technically been banned since January 19, 2024, Donald Trump has so far delayed enforcing this penalty on several occasions.
With this executive order, he believes the deal aligns with the law, but Congressional support remains uncertain. ByteDance and American investors now have 120 days, until the end of January 2026, to finalize the deal.
Still a Case of Uncertainty
This agreement marks a strategic turning point, but several uncertainties remain: Beijing’s official reaction, the Congressional vote, and the technical feasibility of partially separating TikTok. Until then, the future of America’s favorite social network for young people hangs in the balance of negotiations between Washington and Beijing.