Trump’s TikTok Deal Explained: Stage Set For Potential US Takeover Of App

US President Donald Trump signed an executive order on Sept. 25, clearing the path for a deal that would shift the majority ownership of TikTok into American hands. While the key terms appear to be in place, the agreement still requires time to be finalised as the legal and financial details are negotiated, reported NBC News.

Under the framework outlined in the order, TikTok’s Chinese parent company ByteDance and its affiliates will retain less than 20% of the platform. The remaining 80% will be controlled by “certain investors,” according to NBC News.

The new US-based company is expected to be valued at around $14 billion, according to Vice President JD Vance. This figure falls well below some analysts' estimates, Reuters reported.

At the White House signing ceremony, Trump said the American version of the app would be run by “highly sophisticated” investors including Larry Ellison, founder of cloud giant Oracle, tech investor Michael Dell and media mogul Rupert Murdoch, reported AFP. Investment firm Silver Lake Management and Silicon Valley heavyweight Andreessen Horowitz are also believed to be involved.

“The proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security,” Trump said in the order, according to AFP. The platform has about 170 million US users. While noting that the lineup of investors are all his allies, Trump insisted the app “would not toe any political line.”

A key element of the deal is the control of TikTok’s prized algorithm, the very feature that powers the app’s famous ‘For You’ page. According to NBC News, Vance said the American investors will take charge of the algorithm.

Often described as TikTok’s “secret sauce,” the algorithm has been central to the app’s meteoric rise by personalising feeds and enabling content to go viral. According to AFP, Trump said the US version would feature a homegrown model of this algorithm.

When asked whether he hoped the new algorithm might promote more pro-Trump content, the President responded, “If I could make it 100% MAGA, I would, but it’s not going to work out that way, unfortunately. No, everyone’s going to be treated fairly. Every group, every philosophy, every policy will be treated very fairly.”

According to Reuters, Trump said that Chinese President Xi Jinping has signalled his approval. “I spoke with President Xi. We had a good talk, I told him what we were doing, and he said go ahead with it,” Trump said.

On Sept. 25, Trump delayed until Jan. 20, 2026, the enforcement of a law banning TikTok unless its Chinese owners sell the app. This extension gives time to finalise the sale of TikTok’s US assets, bring in American and other investors, and secure approval from Beijing, Reuters reported.