President Trump Signs Order to Bring TikTok Under US Ownership

29. September 2025 Admin

President Trump Signs Order to Bring TikTok Under U.S. Ownership

In a landmark move on September 25, 2025, President Donald Trump signed an executive order requiring the U.S. operations of TikTok to be divested from its Chinese parent company, ByteDance. This action follows the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) passed in 2024, which mandates either divestiture or banning of apps deemed controlled by foreign adversaries.

Background to the Order

TikTok has faced ongoing scrutiny in the United States over concerns about data security, user privacy, and the influence of its Chinese parent company. Under PAFACA, the U.S. government has the authority to block such apps or require their sale to American owners. The new order marks the most significant step yet to bring the app under domestic control.

Key Provisions of the Executive Order

The U.S. TikTok entity must be majority owned by U.S. persons; ByteDance can hold less than 20%.
The app’s algorithm will be duplicated and retrained on U.S. servers, supervised by “trusted security partners.”
A 120-day transition window is granted for the divestiture to be completed.
The Department of Justice is barred from enforcing the ban during the transition period.
The order revokes previous memoranda related to TikTok’s U.S. operations and formally classifies the new ownership as a “qualified divestiture.”

Who Will Own TikTok U.S.?

The new U.S. TikTok is being valued at $14 billion. A consortium including Oracle, Silver Lake, Michael Dell, Rupert Murdoch, and Abu Dhabi’s MGX will take the largest ownership stake. Oracle is expected to lead on algorithm oversight, cloud infrastructure, and data security. ByteDance and other international investors will retain a minority stake and may receive licensing fees.