- By Supratik Das
- Fri, 26 Sep 2025 03:39 PM (IST)
- Source:JND
US TikTok Ban lift: US President Donald Trump on Thursday signed an executive order approving a deal that will see TikTok’s American operations transferred to a new company majority-owned by US investors. The move ends months of uncertainty surrounding the popular short-video app, which faced the threat of a ban under a 2024 law unless its Chinese parent ByteDance divested its stake.
What's In The TikTok Deal?
• US President Donald Trump signs an executive order approving the deal.
• TikTok’s US operations to become a separate entity valued at USD 14 billion.
• US investors, led by Oracle, Murdoch, and Dell, are to take 80 per cent control.
• ByteDance and Chinese investors to hold less than 20 per cent.
• A seven-member board with six Americans will oversee the company.
• Oracle to provide data security and monitor algorithms.
• Deal seen as meeting requirements of the 2024 divest-or-ban law.
• Trump says Chinese President Xi Jinping gave his “go-ahead” for the deal.
Announcing the deal from the Oval Office, Trump said, “This is going to be American-operated all the way.” He praised the new investors as “great, the biggest” and added that the deal ensures the app’s future in the United States. Trump also disclosed that he had personally spoken to President Xi. “I had a very good talk with President Xi and he gave us the go-ahead,” he said.
What Will Change For TikTok Users?
TikTok, with over 170 million US users, was denounced by lawmakers as a national security threat based on ByteDance's connections to China. The Chinese government was feared by opponents to access sensitive American user information.
Congress in 2024 enacted a bipartisan law requiring ByteDance to sell off TikTok's US business or risk a ban across the country. The law was a response to increasing concern about data protection and foreign control
The new American-owned TikTok company will possess its own AI-trained algorithm on US user data. Decisions regarding content suggestions, promotions, and moderation will be made locally. Oracle will become the trusted security partner, continuing to store US user data on US servers and watching over software updates, data moving through the system, and algorithm modifications.
The latest deal also marks a reversal for Trump. In 2020, in his initial presidential term, he had tried to block TikTok completely. But while running for re-election in 2024, he had moderated his position, noting the popularity of the app and how it was helping small business owners. On Thursday, he acknowledged that several entrepreneurs had urged him not to block TikTok. "Small businesses have become very successful due to TikTok, and we did not think of that," Trump said.
What Next?
The deal still requires final regulatory approvals and the issuance of an export license for TikTok’s algorithm from Beijing. US officials have postponed enforcement of the law until January 23, 2026, to allow time for the transition.
ALSO READ: How Do Americans View TikTok And Its Addictive Video Algorithm?
For TikTok’s vast user base, the app will continue to function largely as before. Now it remains to be seen whether the new US-only TikTok can replicate the same powerful algorithm that made the platform a global sensation.