Exclusive: Trump Signs Deal Keeping TikTok Online With New U.S.-Controlled Venture
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The deal, signed Sept. 25 at the White House, averts a ban threatened under legislation passed earlier this year
President Donald Trump signed an executive order approving a deal that allows short-video app TikTok to keep operating in the U.S., resolving a drawn-out dispute with a novel structure that divides the app’s American business between parent company ByteDance Ltd. and U.S. investors.
The deal, signed Sept. 25 at the White House, averts a ban threatened under legislation passed earlier this year. Trump said “the young people” were happy for him to “save TikTok,” adding that a ban would have harmed small businesses relying on the platform for advertising.
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- President Trump signed an executive order on Sept. 25, 2025, allowing TikTok to operate in the U.S. under a new joint venture structure.
- The U.S.-based TikTok joint venture will be owned 50% by American investors, 30.1% by ByteDance’s current shareholders, and 19.9% by ByteDance, addressing national security concerns.
- The deal values the U.S. portion at about $14 billion, includes Oracle for security, and requires final approval from Chinese regulators.
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Who’s Who
- TikTok
- Donald Trump signed an executive order allowing TikTok to continue operating in the U.S. A new structure divides the app's American business between parent company ByteDance Ltd. and U.S. investors. This deal averted a ban threatened under the PAFACA law, passed in March 2024. The agreement aims to address U.S. national security concerns.
- ByteDance Ltd.
- ByteDance Ltd., a Beijing-based company, is the parent company of the short-video app TikTok. In a recent deal to allow TikTok to continue operating in the U.S., ByteDance will retain full ownership of TikTok's U.S. company, focusing on commercial functions like advertising and e-commerce. It will also license its algorithm to a new U.S.-based joint venture, maintaining intellectual property rights. ByteDance will hold a 19.9% stake in this joint venture.
- Oracle Corp.
- In the deal allowing TikTok to continue operating in the U.S., Oracle Corp. is specified to play a very important role in the security aspects of TikTok's U.S. operations. The agreement outlines that American investors and companies will jointly run these operations.
- TikTok USDS Joint Venture
- The TikTok USDS Joint Venture is a new US-based entity formed to oversee data protection and content moderation for TikTok's US operations. Ownership is split, with 50% going to new American investors, 30.1% to ByteDance's current US and global shareholders, and 19.9% to ByteDance itself. This structure ensures a US majority on its seven-member board and aims to address US national security concerns.
- TikTok US Data Security Inc.
- TikTok US Data Security Inc. (TikTok USDS) is the foundation for a new U.S.-based joint venture, TikTok USDS Joint Venture. This new entity will be responsible for overseeing U.S. data protection and content moderation for TikTok. Its ownership will be split among American investors, ByteDance's current U.S. and global shareholders, and ByteDance itself, with ByteDance's stake below 20%.
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What Happened When
- March 2024：
- The Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) was passed, setting new rules concerning foreign ownership and control of applications such as TikTok.
- Earlier in 2025：
- Legislation threatening a TikTok ban was passed.
- January 19, 2025：
- After legal challenges failed, TikTok was briefly forced offline.
- After January 19, 2025：
- President Trump issued extensions for TikTok while negotiations over the company's U.S. operations continued.
- September 15, 2025：
- Wang Jingtao, deputy director of the Cyberspace Administration of China, confirmed that both sides had reached a basic consensus and that China would review the necessary approvals for the agreement.
- September 19, 2025：
- President Trump and Chinese President Xi Jinping spoke by phone, with Xi affirming China’s respect for a company-driven solution regarding TikTok.
- September 25, 2025：
- President Donald Trump signed an executive order approving the TikTok deal at the White House, officially allowing TikTok to continue U.S. operations under a new joint structure.
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