- TikTok U.S. valued at around USD 14 billion
- Investor group (Oracle, Silver Lake, and Abu Dhabi’s MGX) to control 45% of the company
- Oracle will oversee security and remain the cloud solutions provider
- The executive order provides for about a 120-day window to finalize the deal, still requiring approvals from China.
President Donald Trump signed an executive order supporting the framework that will allow TikTok to operate in the U.S., valuing the new American entity at about USD 14 billion. The plan refers to the 2024 law requiring China’s ByteDance to divest control of TikTok. The company would retain less than 20% ownership, while the U.S.-led investor group (including Oracle, Silver Lake, and MGX) would hold around 45%, with the remainder going to other existing/new investors. The White House presents this as a solution to the national security issue that simultaneously keeps the app available to 170 million U.S. users and fulfills the divestment requirements.
Operationally, the new joint venture (JV) will oversee TikTok’s U.S. operations, with Oracle playing a central role: the company will take charge of security operations (including data protection) and will continue providing cloud infrastructure. The executive order highlights U.S. oversight of the recommendation algorithm, including retraining and monitoring of models in cooperation with U.S. security partners. Trump said he discussed the plan with Chinese President Xi. Chinese regulatory approvals remain a necessary condition, and negotiations are still ongoing.
The U.S. administration has delayed enforcement of the ban provisions until December 16, 2025, and the transaction documents provide about 120 days to complete the ownership changes.
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