Trump Signs Executive Order Approving TikTok U.S. Acquisition; Valuation at $14 Billion (Comprehensive)

ByteDance Required to Reduce Stake Below 20 Percent
Oracle, Silver Lake, and Others to Secure 45 Percent Ownership

U.S. President Donald Trump has signed an executive order approving the sale of TikTok's U.S. business rights, allowing the Chinese-owned video platform to continue operating in the United States.

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On September 25 (local time), President Trump signed an executive order permitting TikTok to maintain its U.S. operations.

As a result, ByteDance, TikTok's Chinese parent company, is required to sell its U.S. business rights and reduce its stake to below 20 percent. A new joint venture will operate TikTok's U.S. entity. However, final approval from the Chinese government is still necessary to complete the sale of TikTok's U.S. business rights.

According to CNBC, Oracle, Silver Lake, and Middle Eastern investment fund MGX are expected to participate as major investors, securing approximately 45 percent of TikTok's U.S. entity. Oracle will be responsible for TikTok's security operations and cloud services. However, as negotiations are ongoing, the exact shareholding may change. Under the "TikTok Ban Act," ByteDance will hold 19.9 percent, keeping its stake below 20 percent, while the remaining 35 percent will be held by ByteDance investors and new investors.

Previously, President Trump stated, "Larry Ellison, CEO of Oracle, is playing a key role in the ownership structure," emphasizing, "Now, TikTok will be owned and operated by Americans."

Oracle, a U.S. software and cloud company, was designated as a "Security Partner" when the sale of TikTok's U.S. entity was first pursued in 2020, taking on the role of storing and managing TikTok's U.S. user data.

Silver Lake, a global private equity firm specializing in technology investments, has been involved as an investor since discussions of TikTok's U.S. sale began in 2020. MGX is a new investment company jointly established in 2024 by the Abu Dhabi sovereign wealth fund and UAE tech giant G42.

MGX is a powerful entity in the UAE, led by Sheikh Tahnoun bin Zayed Al Nahyan, the brother of the ruler of Abu Dhabi and the UAE's National Security Advisor. MGX is well known for its investments in companies such as OpenAI, the developer of ChatGPT. Since President Trump took office, MGX has emerged as an investor in major deals involving U.S. strategic interests.

Existing ByteDance backers such as General Atlantic, Susquehanna, and Sequoia are also expected to invest in the new TikTok USA. In addition, media mogul Rupert Murdoch and his son Lachlan Murdoch, as well as Michael Dell, CEO of Dell Technologies, are reportedly considering joining the investment group.

However, the U.S. federal government will not directly hold shares in TikTok's U.S. entity or acquire a "golden share" that would grant veto power over key management decisions.

Previously, President Trump had extended the deadline for ByteDance to sell TikTok's U.S. business several times. In April last year, the U.S. Congress passed the "TikTok Ban Act," putting ByteDance at risk of having TikTok's U.S. service suspended if it did not sell its U.S. business rights. Recently, after China shifted its stance during high-level U.S.-China trade negotiations, discussions on the sale of TikTok's U.S. business accelerated. President Trump reached a final agreement on the TikTok sale after a phone call with Chinese President Xi Jinping.

The market valued ByteDance at $330 billion as of last month, with TikTok's U.S. business rights estimated at $30 billion to $35 billion. J.D. Vance, U.S. Vice President, who played a key role in the TikTok sale, stated that the enterprise value of TikTok's U.S. entity is about $14 billion.

This content was produced with the assistance of AI translation services.