Trump Greenlights Oracle-Led Acquisition of TikTok's U.S. Operations

Former President Donald Trump has approved a significant deal to transfer TikTok's U.S. operations to a newly established, American-controlled entity. Announced via executive order, the agreement positions Oracle as the leading entity behind the transaction, supported by a consortium of American and international investors who will collectively secure a 45% stake in the company. ByteDance, TikTok's Chinese parent company, will retain less than 20% ownership, helping TikTok avoid a potential U.S. ban over national security concerns.

This decision aligns with U.S. national security laws, which mandate that foreign technology companies divest their control in U.S. operations or cease functioning within American borders. Vice President JD Vance disclosed that TikTok’s valuation under the agreement stands at $14 billion. While regulatory approval from the Chinese government remains pending, Trump claimed that Chinese President Xi Jinping has already expressed informal support for the deal. However, ByteDance representatives were notably absent during the formalization of the agreement.

Oracle to Oversee TikTok's U.S. Security and Technology

Under the terms of the deal, Oracle will manage TikTok's U.S. security and technological infrastructure. This role includes overseeing data protection and providing cloud infrastructure to the platform. According to Wednesday’s report by CryptoPolitan, Trump praised Oracle co-founder Larry Ellison’s involvement, highlighting him as a key American figure with a deep commitment to ensuring the deal's success.

The investor group facilitating the acquisition includes prominent players like Silver Lake and Abu Dhabi’s MGX Investment Fund, which collectively will own 45% of the new company. The remaining ownership structure allocates 35% to current ByteDance investors and incoming stakeholders. As reported by CNBC's David Farber, influential investment firms such as General Atlantic, Sequoia, and Susquehanna have been named as likely contributors to the restructured TikTok entity.

ByteDance, while retaining a minor ownership stake below 20%, will be completely excluded from operational decision-making and daily business functions within TikTok's U.S. segment. This arrangement partially addresses U.S. governmental demands for the separation of TikTok from ByteDance while allowing the latter to retain some equity. ByteDance, recently valued near $330 billion globally, is estimated to have TikTok's U.S. business valued between $30 billion and $35 billion.

Prioritizing American Ownership Without Federal Equity

Notably, the U.S. government has confirmed it will not acquire any equity in TikTok's U.S. operations as part of this deal. Unlike prior discussions around the possibility of federal ownership or even a so-called “golden share” to exert control, the finalized arrangement ensures that TikTok retains its private-sector ownership structure.

In remarks following the announcement, Trump hinted at potential roles for high-profile figures like Rupert Murdoch, Lachlan Murdoch, and Dell Technologies CEO Michael Dell in bolstering the deal through investments or strategic guidance. The inclusion of such individuals underscores the prominence of U.S. business interests in ensuring the long-term success of TikTok's operations under the new entity.

Additionally, Trump recently signed another executive order extending the deadline for ByteDance to execute the divestiture. The order provides safeguards for technology companies such as Apple, Google, and other service providers to continue collaborating with TikTok during the transitional period without legal repercussions.

The TikTok-Oracle deal marks a critical moment in the ongoing dialogue around foreign technology, data security, and national sovereignty. Its final execution will likely set a precedent for similar cases moving forward, balancing corporate interests, geopolitical considerations, and data protection priorities.