President Trump has signed an executive order blessing a deal to give Oracle and Walmart control of TikTok in the U.S., at least for now, allowing the app to keep functioning after he threatened this summer to ban it bag and baggage unless its parent company sold it to Americans. The order outlines a bold vision of U.S. majority ownership, oversight over the app’s algorithms by U.S. entities, and domestic storage of data — but does not explain key issues related to timing, investors, or technical implementation.
What the Executive Order on the TikTok Deal Says
The order details a “framework agreement” that would transfer TikTok’s U.S. operations — including its content moderation and recommendation algorithms — into a new entity, majority-owned and controlled by American persons. ByteDance’s stake would be limited to 20 percent, a structure meant to address U.S. national security concerns and curb control by an adversary as defined in U.S. law.
It also requires storage of U.S. user data in the country. That requirement is in line with past risk-mitigation measures that CFIUS — which has been more insistent about onshore data custody, third-party audits, and tightly controlled access — has reviewed for sensitive tech deals.
Unanswered Questions Swirl Around The Timeline
The White House framed the deal as a framework, as opposed to final closing on the pact, indicating that discussions between U.S. officials and ByteDance, as well as Chinese officials, are happening behind closed doors. The order doesn’t name investors involved in the full group, detail board composition, or specify when U.S. venture operational control will formally shift.
Technical details are equally pivotal. It’s not clear if the recommendation engine will be entirely transferred, licensed, or mirrored under supervised access, whether source code is going to be escrowed, and whether U.S. engineers are going to control model training ultimately. There isn’t even clarity on whether users will have to download a new app or receive an in-place update that just happens behind the scenes through the app stores.
The Players Circling the Deal and Their Roles
Although not included in the order is a cap table, President Trump has been touting involvement from big-name U.S. business figures, saying Oracle made a large investment and expressing interest from top investors. The deal mirrors last year’s Oracle-driven configuration that didn’t come to fruition and extends the work Oracle has as host of U.S. data for TikTok under the Project Texas security initiative.
Vice President J.D. Vance has said the deal pegs TikTok’s value around $14 billion in this configuration, which is well short of estimates for ByteDance’s global operation and speaks to both regulatory pressure as well as the size of the U.S.-only carve-out. The market, politicians, and courts will all closely examine the valuation mechanics and governance rights if realized.
Security, Data, And Algorithmic Governance
In Washington’s view, the key is ongoing control: who has access to user data, who can manipulate the recommendation engine, and who is authorized to make code changes. Security professionals point out that, while domestic hosting is important, it’s not by itself adequate — as with most national security agreements you also need strong change management, third-party code audits, and continuous monitoring. Previous CFIUS resolutions have awarded independent compliance monitors, audit rights, and even demands for personnel vetting as part of settlements over telecom and semiconductor deals, and a move like that could be at play here.
Another variable lies in Beijing. Since last year, Chinese export controls also cover recommendation algorithms and other sensitive software, so any transfer or licensing agreement may require approval from Chinese regulators. That process, rather than any U.S. decision itself, could ultimately determine the shape and timing of the handover.
What It Means for Users and Creators in the U.S.
TikTok’s reach in the United States is enormous: the company has said it counts more than 170 million Americans among its active users, and according to Pew Research Center, a majority of adults under 30 are using TikTok, with particularly high usage among teens and young adults. For creators and small businesses, the platform is a direct-to-consumer funnel, and any shake-up could have a knock-on effect on livelihoods, as well as advertising plans.
Insider Intelligence expects TikTok to generate billions of dollars in ad revenue in the U.S. each year, which is why advertisers have sought certainty during months of uncertainty. If the transition is invisible to end users — no new app, no account migration — brand spending could level off. If it doesn’t, advertisers could temporarily shift some of their dollars to Reels or Shorts as they have during previous bouts of regulatory whiplash.
What to Watch Next as the TikTok Deal Progresses
Key mileposts to watch:
- Final investor disclosures and governance terms
- Confirmation of a transfer or licensing of algorithms
- Security controls over access to and updates of code
- Any signal from the Chinese ministries on export clearance
App store guidance from Apple and Google is also a signal of what you should expect, or whether you need to take some specific action, versus a silent transition.
The executive order implies political momentum, and the White House has said more will follow. Until the parties are clear about who operates the code, who controls the keys to data, and when the switch flips, the TikTok story is one under construction — closer to an ending but not quite past post time.