US President Donald Trump has signed an executive order approving a plan to spin off TikTok’s US business into a new company controlled by US investors. ByteDance will retain a smaller stake and license the recommendation algorithm, while Oracle will be responsible for data security and technical oversight.
US President Donald Trump has signed an executive order approving a plan to spin off TikTok’s US business into a new company controlled by US investors. ByteDance will retain a smaller stake and license the recommendation algorithm, while Oracle will be responsible for data security and technical oversight.
The announcement was made during a White House broadcast. The order confirms that the new structure complies with the TikTok divestment law, under threat of blocking the app in the United States.
According to Trump, the «American» version of TikTok will be owned by a consortium of investors from the United States. CNBC previously reported on the core investors — Oracle, Silver Lake and MGX — with a combined stake of about 45%. ByteDance will retain 19,9%, the rest — with the Chinese company’s previous investors. Vice President J.D. Vance valued the new company at about $14 billion and assured that control over how the algorithm promotes content will belong to the American side. Trump separately confirmed Oracle’s participation and named Michael Dell and Rupert Murdoch among the investors.
The key technological node is the recommendation algorithm. The model involves licensing the algorithm to ByteDance with technical and security oversight from Oracle. Some lawmakers have criticized the idea of any scenario in which the algorithm is not fully under American jurisdiction, so the White House emphasizes that functional control and security policies will be determined in the United States.
The executive order was the culmination of a long history. Last year, former President Joe Biden signed a law requiring TikTok to be sold or blocked; in January 2025, the Supreme Court upheld it, after which the app briefly went dark in the United States. Since then, the Trump administration has extended the ban deadline several times, waiting for an agreed-upon market solution.
Oracle will continue to serve as a security and infrastructure partner: control of data storage in the US, isolation from the parent company, auditing of access and protocols. When asked about the platform’s possible political bias, Trump said he would like to be «100% MAGA,» but the algorithm «will treat everyone fairly»; he said China is «fully on board» with the deal.
TikTok, with an audience of hundreds of millions of users, has become the subject of the largest case of «forced divestiture» of a technology asset in US history on national security grounds. The «US TikTok» model combines capital distribution among US investors, algorithm licensing to ByteDance, and operational oversight by Oracle. The next steps are formalizing the ownership structure, software/algorithm agreements, and technical transition to US data policies; it is on their implementation that it will depend whether the US government removes the risks inherent in the original blocking law.
Previously, dev.ua wrote about how US President Donald Trump announced that the United States and China had reached an agreement regarding the short-video app TikTok, under which the American assets of the app, owned by the Chinese company ByteDance, would be transferred to local owners.
