'It is owned by Americans': TikTok dodges U.S. ban as Oracle, MGX take control in new deal
Enterprise tech firm Oracle, private equity giant Silver Lake, and Abu Dhabi’s MGX investment fund will collectively hold about 45% of the new TikTok U.S. entity.
- Sep 26, 2025,
- Updated Sep 26, 2025 7:02 AM IST
President Donald Trump on Thursday signed an executive order approving a deal to keep TikTok operational in the U.S., with Vice President JD Vance confirming the transaction values the business at $14 billion.
The agreement resolves a national security mandate that required China-based ByteDance to divest TikTok’s U.S. operations or face a ban. Under the deal, ByteDance will retain less than a 20% stake, with the rest controlled by American and international investors in a newly created joint-venture company.
Enterprise tech firm Oracle, private equity giant Silver Lake, and Abu Dhabi’s MGX investment fund will collectively hold about 45% of the new TikTok U.S. entity. Another 35% will be owned by ByteDance’s existing investors and new stakeholders, according to CNBC’s David Faber.
Oracle will oversee TikTok’s U.S. data and security infrastructure and continue as its cloud provider. Trump said Oracle chairman Larry Ellison is part of the ownership group, calling the deal “American operated all the way.”
“It’s owned by Americans, and very sophisticated Americans,” Trump said at the signing.
ByteDance was absent from the ceremony and has not acknowledged the transaction publicly. The Chinese government must still approve the deal. No purchase price was disclosed, and it remains unclear whether China has amended data or export control laws that could complicate the transaction.
Faber also reported that ByteDance investors such as General Atlantic, Susquehanna, and Sequoia Capital are expected to contribute equity to the U.S. venture. ByteDance was valued at $330 billion last month, and analysts had estimated TikTok’s U.S. arm could be worth up to $35 billion.
Despite Trump’s claim that Chinese President Xi Jinping gave the green light, Vice President Vance said there was initial resistance from Beijing.
The executive order also delays enforcement of a national security law—originally enacted under President Joe Biden—that could have penalized Apple, Google, and internet providers for supporting TikTok’s U.S. operations. The new deadline for compliance is December 16.
Notably, the U.S. government will not take an equity stake or a “golden share” in the company. Trump has also floated names including Rupert Murdoch, Lachlan Murdoch, and Dell Technologies CEO Michael Dell as possible future investors.
President Donald Trump on Thursday signed an executive order approving a deal to keep TikTok operational in the U.S., with Vice President JD Vance confirming the transaction values the business at $14 billion.
The agreement resolves a national security mandate that required China-based ByteDance to divest TikTok’s U.S. operations or face a ban. Under the deal, ByteDance will retain less than a 20% stake, with the rest controlled by American and international investors in a newly created joint-venture company.
Enterprise tech firm Oracle, private equity giant Silver Lake, and Abu Dhabi’s MGX investment fund will collectively hold about 45% of the new TikTok U.S. entity. Another 35% will be owned by ByteDance’s existing investors and new stakeholders, according to CNBC’s David Faber.
Oracle will oversee TikTok’s U.S. data and security infrastructure and continue as its cloud provider. Trump said Oracle chairman Larry Ellison is part of the ownership group, calling the deal “American operated all the way.”
“It’s owned by Americans, and very sophisticated Americans,” Trump said at the signing.
ByteDance was absent from the ceremony and has not acknowledged the transaction publicly. The Chinese government must still approve the deal. No purchase price was disclosed, and it remains unclear whether China has amended data or export control laws that could complicate the transaction.
Faber also reported that ByteDance investors such as General Atlantic, Susquehanna, and Sequoia Capital are expected to contribute equity to the U.S. venture. ByteDance was valued at $330 billion last month, and analysts had estimated TikTok’s U.S. arm could be worth up to $35 billion.
Despite Trump’s claim that Chinese President Xi Jinping gave the green light, Vice President Vance said there was initial resistance from Beijing.
The executive order also delays enforcement of a national security law—originally enacted under President Joe Biden—that could have penalized Apple, Google, and internet providers for supporting TikTok’s U.S. operations. The new deadline for compliance is December 16.
Notably, the U.S. government will not take an equity stake or a “golden share” in the company. Trump has also floated names including Rupert Murdoch, Lachlan Murdoch, and Dell Technologies CEO Michael Dell as possible future investors.