TikTok’s Future in the U.S. Secured in Major Deal
A $14B deal reshapes TikTok’s U.S. operations with Oracle and partners taking control.
A significant chapter in the ongoing saga of TikTok’s U.S. operations has concluded with a newly approved deal. The agreement addresses national security concerns that have surrounded the popular social media app for months. President Donald Trump has signed an executive order greenlighting a transaction that keeps TikTok active in the United States.
The Structure of the Deal
The deal creates a new joint-venture company to oversee TikTok’s U.S. business. According to the executive order, this arrangement satisfies the requirements of a national security law that compelled China-based ByteDance to sell its U.S. operations or face a ban.
Under the terms, ByteDance will see its ownership stake in the new U.S. entity reduced to less than 20%. The new controlling investors will be a consortium of major players in the tech and finance worlds. Enterprise technology firm Oracle, private equity giant Silver Lake, and the Abu Dhabi-based investment fund MGX are set to become the main investors, controlling a combined stake of roughly 45%. Other ByteDance investors and new holders will own the remaining 35%.
Vice President JD Vance announced that the transaction values the new U.S. business at $14 billion. This figure is notable, as analysts had previously estimated the value of TikTok’s U.S. operations to be between $30 billion and $35 billion.
National Security at the Core
The driving force behind this entire process has been concern over national security. The U.S. government has long worried about the potential for the Chinese government to access the data of American users through ByteDance.
Under the new arrangement, Oracle will play a crucial role in safeguarding user data. The company is set to oversee the app’s security operations and will continue to provide cloud computing services for the new TikTok U.S. firm.
President Trump emphasized American control of the new venture. “It’s owned by Americans, and very sophisticated Americans,” he stated at the signing. “This is going to be American-operated all the way.” Oracle CEO Larry Ellison is reported to be personally involved in the ownership group, with the President noting his company is “playing a very big part.”
Geopolitical Implications
This agreement marks a pivotal moment in U.S.-China relations, particularly in the tech sector. The deal required careful navigation, with President Trump stating that Chinese President Xi Jinping gave the go-ahead for the deal. Vice President Vance also noted that the Chinese government had shown some resistance before the agreement was reached. The Chinese government must still formally approve the terms.
The transaction is a complex solution to a complex problem, balancing national security with the economic realities of a globally intertwined tech industry. While this deal resolves the immediate threat of a ban, it sets a precedent for how governments might handle foreign-owned technology platforms in the future.
The journey to this point has been turbulent. The President recently signed an executive order that extended ByteDance’s deadline to divest, preventing the Department of Justice from enforcing the national security law until December 16. This final agreement appears to provide a path forward, allowing millions of American users to continue using the app under a new, U.S.-controlled structure.
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