Trump Signs Executive Order for TikTok’s U.S. Operations Sale to Supporters

Published
September 26, 2025

In a significant move that intertwines technology, politics, and international relations, former President Donald Trump has signed an executive order outlining the sale of TikTok’s U.S. operations to a consortium of wealthy supporters. This decision comes amid ongoing concerns regarding data privacy and national security, as the platform’s Chinese parent company, ByteDance, will retain a minority stake of less than 20%.

The New Consortium of Investors

From the Oval Office, Trump announced that the revamped American version of TikTok would be managed by a group of “highly sophisticated” investors. Notable figures in this consortium include Larry Ellison, the co-founder of Oracle, Michael Dell, the founder of Dell Technologies, and media mogul Rupert Murdoch. Additionally, investment firms Silver Lake Partners and Andreessen Horowitz are expected to play pivotal roles in the acquisition.

This move marks a significant shift in the ownership structure of TikTok, which has faced scrutiny from U.S. lawmakers over its ties to China. The executive order, issued late Thursday, aims to alleviate fears that the Chinese government could access American users’ data or manipulate the platform’s algorithm for political purposes.

Political Implications and Allegiances

The new investors are not just business magnates; they are also known allies of Trump, sharing his political ideologies. However, Trump emphasized that the platform would not exhibit any partisan bias. “Every group, every philosophy, every policy will be treated very fairly,” he stated. Yet, he acknowledged a desire to align the platform more closely with his “Make America Great Again” (MAGA) movement.

This political backdrop raises questions about the potential implications for content moderation and user experience on the platform. Critics worry that the alignment with Trump’s supporters could lead to a biased environment, while supporters argue that it could foster a more American-centric approach to content.

Data Privacy and Algorithm Concerns

The executive order also highlights the importance of data privacy. Vice President JD Vance stated that the primary goal was to keep TikTok operational while ensuring compliance with U.S. laws regarding data protection. The new U.S. entity is projected to be valued at around $14 billion, with the final decision-making power resting with the investors.

The algorithm, which has been a cornerstone of TikTok’s success, will be replicated for the U.S. version of the app. This decision aims to maintain the platform’s appeal while addressing security concerns. The algorithm’s ability to curate content has been both praised for its engagement and criticized for its potential to create echo chambers.

Legislative Background and International Relations

The backdrop to this executive order is a series of legislative actions taken by Congress, which has long been wary of TikTok’s Chinese ownership. In 2024, lawmakers passed a law mandating TikTok to sever ties with ByteDance, threatening a ban if compliance was not achieved. Trump has extended the deadline for this separation multiple times, with the current deadline set for January 23, 2026.

In a recent phone call, Trump claimed that Chinese President Xi Jinping had approved the deal, a statement that underscores the complex interplay between U.S. and Chinese relations. Xi reportedly urged Trump to avoid unilateral trade restrictions and to foster a non-discriminatory environment for Chinese companies operating in the U.S.

Guo Jiakun, a spokesperson for China’s Foreign Ministry, echoed this sentiment, expressing hope for an open and fair business climate for Chinese investments in the U.S. This diplomatic nuance adds another layer to the ongoing saga of TikTok, illustrating how business decisions are often entangled with international politics.

TikTok’s Strategic Moves

In anticipation of U.S. regulatory pressures, TikTok had already begun restructuring its operations. Earlier this year, the platform cut jobs within its local teams and its marketplace business, TikTok Shop, which boasts over 500,000 active merchants in the U.S. This strategic pivot was seen as a preemptive measure to mitigate backlash and demonstrate compliance with U.S. expectations.

Moreover, TikTok’s expansion into Europe, particularly in France, has been met with scrutiny. French lawmakers have initiated inquiries into the psychological effects of the platform on minors, reflecting a growing global concern about the impact of social media on youth.

Conclusion

The sale of TikTok’s U.S. operations to a group of Trump’s supporters marks a pivotal moment in the intersection of technology, politics, and international relations. As the platform transitions to American ownership, the implications for data privacy, content moderation, and user experience remain to be seen. With the backdrop of legislative scrutiny and international diplomacy, the future of TikTok in the U.S. is poised to be a focal point of discussion in the coming months. As the deadline for compliance approaches, all eyes will be on how this new chapter unfolds for one of the world’s most popular social media platforms.