Trump signs executive order approving TikTok deal, valuing US business at approximately $14 billion

On September 26 (UTC+8), US President Trump officially signed an executive order approving the restructuring of TikTok's US operations. Vice President JD Vance stated in a subsequent statement that the transaction values TikTok's US operations at approximately $14 billion.

According to the executive order, this arrangement is deemed to comply with the US National Security Act, requiring Chinese parent company ByteDance to divest TikTok's US operations or face an operational ban.

According to the disclosed terms, TikTok's US operations will be operated by a newly established joint venture. In this structure, ByteDance will hold no more than a 20% stake, while Oracle, Silver Lake, and Abu Dhabi's MGX Investment Fund will jointly hold approximately 45%.

In addition, existing and new ByteDance investors will collectively hold approximately 35% of the shares. These include prominent investment institutions such as General Atlantic, Susquehanna, and Sequoia, and are expected to convert some of their ByteDance interests into equity in the new company.

In addition to the equity arrangement, Oracle will also assume a key technical support role for TikTok's US operations, including security operations and cloud computing services, to ensure user data complies with US regulatory requirements.

This arrangement is seen as a key measure to alleviate US concerns about data security.

Although the US has pushed the transaction forward, the plan still requires approval from the Chinese government. The Chinese government has yet to clarify whether it will adjust relevant export controls or cross-border data regulations to facilitate the transaction. Notably, no ByteDance representatives were present at the ceremony where Trump signed the executive order, the specific acquisition price was not publicly disclosed, and ByteDance has not publicly acknowledged the existence of any such transaction arrangements.

The transaction is expected to be completed by the end of this year, but certain policy and legal uncertainties remain.

This restructuring is seen as a key attempt by technology companies to address geopolitical risks in a complex international economic and trade environment.