Trump Signs Executive Order for TikTok‘s U.S. Divestment: A New Chapter for the Popular App
The new deal comes after the White House delayed enforcement of the ban of the short-form video app four times.
On September 25, 2025, President Donald Trump took a significant step in the ongoing saga surrounding TikTok by signing an executive order that outlines a divestment plan for the popular short-form video app. This move comes after a series of delays in enforcing a potential ban on the app, which has been a focal point of U.S.-China relations and concerns over data privacy.
The Executive Order: Key Details
The executive order, signed in the Oval Office, mandates that ByteDance, TikTok’s parent company based in China, divest its U.S. assets within a 120-day timeframe. This decision is largely seen as a response to a law passed by Congress that requires foreign entities to relinquish control over certain digital platforms to safeguard American users’ data. The law, which set a deadline for divestiture in January, has already seen Trump postpone enforcement four times-most recently in the past week-indicating the administration’s desire to keep TikTok operational while addressing national security concerns.
Vice President JD Vance, present during the signing, emphasized the administration’s dual objectives: maintaining TikTok’s presence in the U.S. market while ensuring the protection of American data privacy. “There was some resistance on the Chinese side, but the fundamental thing that we wanted to accomplish is that we wanted to keep TikTok operating,” Vance stated.
The Investors: A New Ownership Structure
The divestment plan involves a consortium of investors, including tech giant Oracle, private-equity firm Silver Lake, and MGX, an artificial intelligence investment firm. Together, these entities are expected to acquire approximately 50% of TikTok’s U.S. operations. Reports suggest that each investor will hold a 15% stake, while ByteDance will retain less than 20% to comply with the new regulations.
This arrangement marks a significant shift in TikTok’s ownership structure, as it transitions from a Chinese-controlled entity to one that is predominantly U.S.-owned. The involvement of Oracle, led by Larry Ellison, has raised eyebrows among experts, who speculate that this could influence the platform’s content moderation policies. Ellison is known for his close ties to Trump, leading some to question whether the app’s content could be skewed to align with the administration’s viewpoints.
Historical Context: The TikTok Controversy
The TikTok saga is not merely a business transaction; it is emblematic of broader geopolitical tensions between the United States and China. Since its rise to popularity, TikTok has faced scrutiny over its data privacy practices and the potential for the Chinese government to access user data. The app’s rapid growth has made it a cultural phenomenon, particularly among younger audiences, but it has also become a flashpoint in discussions about national security and digital sovereignty.
In 2020, the Trump administration first threatened to ban TikTok, citing concerns over user data being accessible to the Chinese government. This led to a series of legal battles and negotiations, with ByteDance attempting to reassure U.S. officials about its data handling practices. The ongoing uncertainty surrounding TikTok has not only affected its business operations but has also sparked debates about the future of digital platforms in an increasingly polarized world.
The Future of TikTok: What Lies Ahead?
As the divestment process unfolds, the future of TikTok in the U.S. remains uncertain. The White House has indicated that it will release a full list of investors involved in the deal in the coming days, which could provide further clarity on the app’s new direction. However, the implications of this ownership change extend beyond business interests; they touch on issues of free speech, data privacy, and the role of technology in society.
Experts have voiced concerns that the new ownership structure could lead to increased censorship or bias in content moderation. The potential for Oracle’s influence on TikTok’s algorithms raises questions about the platform’s commitment to diverse viewpoints. In response to these concerns, President Trump assured reporters that all perspectives would be treated fairly under the new ownership.
Conclusion: A Pivotal Moment for TikTok
The signing of this executive order marks a pivotal moment in the ongoing narrative of TikTok in the United States. As the app transitions to new ownership, it faces the dual challenge of maintaining its user base while navigating the complex landscape of U.S.-China relations and data privacy concerns. The coming months will be crucial in determining how TikTok adapts to its new reality and what this means for its millions of users across the country. As the world watches, the outcome of this divestment could set a precedent for how foreign-owned digital platforms operate in the U.S. moving forward.
