Trump Executive Order Clears Path for Oracle-Led TikTok Takeover

The arrangement separates TikTok from its parent company ByteDance and complies with a law that would have otherwise forced the app to shut down for US users. Under the terms, US investors will acquire the bulk of TikTok’s operations along with rights to a licensed version of its recommendation algorithm. Per Reuters, American companies are expected to hold about 80 percent of the new US entity, with ByteDance and Chinese investors retaining less than 20 percent. The firm will be overseen by a seven-member board, six of whom are Americans with backgrounds in cybersecurity and national security.

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The investor group is led by Oracle, which will manage TikTok’s US operations and provide cloud storage for American user data. Other participants include Silver Lake, Rupert Murdoch and his son Lachlan, and Dell founder Michael Dell. White House officials have said that Chinese stakeholders will have no access to US user information.

Read more: The US Will Not Hold Equity in TikTok’s American Operations

Trump said he had spoken with Xi by phone on Friday, calling the conversation “a very good one” on his social platform Truth Social. The president also wrote that both leaders look forward to meeting at the Asia-Pacific Economic Cooperation summit later this year.

The deal brings closure to months of uncertainty for TikTok, which has about 180 million American users. Trump has credited the app with helping him win the 2024 presidential election. At the same time, the agreement extends his administration’s reach into the technology industry. Earlier this month, the government announced a 10 percent stake in Intel and has pressed companies such as Apple and Nvidia to expand their US investments. According to Reuters, the American investor group is also expected to pay the government a multibillion-dollar fee for securing the deal.

“The United States is getting a tremendous fee-plus—I call it a fee-plus—for just making the deal,” Trump said during a press conference in England last week.