A
What happened
On September 25, 2025, President Donald Trump signed an executive order that approves the sale of TikTok's U.S. operations to an American investor group, with a valuation of approximately $14 billion. This decision comes in response to a national security law mandating TikTok's divestiture or facing a ban in the U.S. The executive order suspends enforcement of this law for 120 days to allow the divestiture process to unfold. Oracle is set to manage TikTok's security operations, ensuring that the app's recommendation algorithm and content moderation systems are under American control. Trump stated that this deal would enhance user confidence regarding data security and reduce the risk of the app being used for propaganda. The executive order also establishes a new board of directors for TikTok U.S. and includes investors like Oracle and Silver Lake, although the complete list of owners remains undisclosed.
★
Key insights
-
1
TikTok's Valuation: The deal values TikTok's U.S. operations at around $14 billion.
-
2
Oracle's Role: Oracle will oversee TikTok's security operations under the new ownership structure.
-
3
User Confidence: The deal aims to enhance user confidence regarding data security.
Takeaways
The executive order marks a significant step in addressing national security concerns related to TikTok's operations in the U.S.