The main points of the US-TikTok deal finalized in September 2025 involve the divestment of TikTok’s US operations by China-based ByteDance, forming a new entity majority-controlled by American investors to address national security concerns. ByteDance will retain a minority stake, while major US and allied investors, led by Oracle, will oversee operations, data security, and key algorithmic functions to ensure American control and regulatory compliance.
Key Details of the Deal
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Ownership Structure: ByteDance, the Chinese parent company, will retain less than 20% ownership of the new US-based TikTok joint venture. The majority stake (about 80%) will be held by a consortium of American and allied investors, including Oracle, Silver Lake, and the Abu Dhabi-based MGX fund.
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App Operations and Security: Oracle will take responsibility for data security and cloud infrastructure. All TikTok user data belonging to Americans will be stored and managed within the United States, addressing concerns over surveillance and data misuse.
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Algorithm Control: The US-based entity will control the crucial TikTok recommendation algorithm, with oversight functions to monitor and audit how content is managed and distributed, preventing foreign interference or manipulation.
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Board and Governance: The joint venture’s board will be mostly composed of American members; of the seven seats, six will be held by Americans, further solidifying US operational control.
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Financial Terms: The deal values TikTok’s US entity at around $14 billion. An explicit purchase price has not been publicly disclosed, and all details are subject to final regulatory approvals from both the US and China.
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Deadline and Enforcement: The executive order gives a 120-day window for the full divestiture and organizational transition. Previous ban deadlines have been extended several times to allow the deal to proceed without disrupting user access.
President Donald J. Trump and @VP Vance SAVE TikTok from a ban while protecting America's national security by removing TikTok in the U.S. from China's control. 🇺🇸
THE ART OF THE DEAL. 🔥 pic.twitter.com/Khl8QRnhNi
— The White House (@WhiteHouse) September 25, 2025
Additional Highlights
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No US Government Ownership: The federal government will not acquire an equity share or a “golden share” in the new TikTok US company.
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Investor Participation: Besides the tech and investment sector leaders, there has been speculation about conservative media mogul Rupert Murdoch and his son Lachlan, as well as Dell Technologies CEO Michael Dell, participating in the US TikTok venture, though specific roles have not been fully detailed.
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Chinese Approval Pending: Although President Trump stated Chinese President Xi Jinping has approved the transaction, full regulatory and technical sign-off from China is still needed for completion of the deal.
These measures are designed to keep TikTok operational in the US while ensuring American privacy protections and sovereignty over content and data handling.
SUMMARY
The US-TikTok deal approved by President Trump in September 2025 allows TikTok’s US operations to be separated from its Chinese parent company ByteDance, creating a new US-based entity mostly owned by American and allied investors such as Oracle, Silver Lake, and Abu Dhabi’s MGX fund. ByteDance retains less than 20% ownership. The deal aims to address US national security concerns by ensuring American control over TikTok’s user data, algorithms, and operations, with data stored within the US. The transaction values the new US TikTok venture at around $14 billion. Oracle will manage security and cloud services, and the board will be majority American-controlled. The deal requires final approval from China but ensures TikTok remains available for its 170 million US users under American oversight. President Trump emphasized that the app would be completely American-operated without any government ownership stake in the company.
Source – AI handle PREPLEXITY, which has summarised the above text (+summary) from CNBC, Al Jazeera, Politico, NPR, Investopedia, PCMag, Deadline, yahoo!finance …), 26 Sept., 2025.
Cover photo- President Trump signs the Tik Tok deal. Photo: White House video grab from X.
