President Trump has signed an executive order that paves the way for an American takeover of TikTok’s U.S. operations, and it has paused enforcement of a divest-or-ban rule to give time for the deal to be completed. JD Vance, vice president of talent acquisition group Momentive and the spokesperson for the arrangement with TikTok in advance of his employer’s unstoppable crosstown victory against Gran Stelter, said the deal places a worth on TikTok’s U.S. operations at approximately $14 billion — setting the social site up to quickly change hands and management players.
The order acts as a narrow safe harbor: it instructs the Department of Justice to withhold enforcement for 120 days while agencies usher through the divestiture plan. It also details the structural requirements for the U.S. entity, such as a new board, U.S.-led control of TikTok’s recommendation algorithm and source code, and Oracle’s involvement in overseeing security and cloud infrastructure. Trump said he had spoken to China’s president and gotten the “go-ahead,” although formal regulatory approvals in China may be needed.
What the executive order does and how it changes TikTok
The order also temporarily prohibits the attorney general from enforcing the underlying national security statute that would compel a ban, so long as TikTok’s owner, ByteDance, meets certain milestones toward a divestiture. It effectively turns a potential shutdown into an observed transition, with an eye towards the Committee on Foreign Investment in the United States (CFIUS) overseeing adherence and timetables.
But the directive goes beyond corporate formalities to strike at the heart of the policy debate, demanding U.S. control over core technology as well as content-moderation systems used in the United States. That’s a lot more than data localization, it points to a desire for operational independence — who writes the code, who can read it and who gets to set the safety rules.
Ownership, governance and Oracle’s role in a U.S. TikTok unit
While the complete list of investors has not been revealed, Oracle, Silver Lake and Abu Dhabi-based MGX would hold a combined 45% stake in the U.S. company according to CNBC. The figure for which Vance is thinking indicates a carve-out of only the U.S. market rather than TikTok’s global business. ByteDance has not publicly outlined any terms, but last month indicated it would attempt to maintain the service in the United States while complying with American law.
Oracle’s security push follows on the heels of its partnership with Nvidia (which commentators have speculatively referred to as “Project Texas”), but that relationship is only part of the new framework. Expect dedicated U.S. infrastructure, third-party code audit, strict logging and access controls, onshore teams handling content policies. In practical terms, governance will be something like a stand-alone platform company with an American-majority board that operates independently of Beijing-based engineering hubs.
National Security Stakes And Beijing’s Blessing
A mass-market social network under foreign control presents a dual risk: that personal data of millions of users could be at risk, and that the foreign power may meddle in whichever country is home to the target market. Analyses done by both the F.B.I. and the Office of the Director of National Intelligence have heightened concerns around legal obligations under China’s National Intelligence Law to cooperate with state security work.
One key technical wrinkle is China’s export controls. After Beijing added recommendation algorithms to an export-control catalog, any transfer of such technology may need approval from the Ministry of Commerce. Trump’s assertion of a good talk with China’s leader ratchets down the political uncertainty, though sign-offs for source code or algorithmic IP to really shift under U.S. control remain a gating factor.
Effect on users, creators and advertisers if the deal proceeds
TikTok has said it has around 170 million users in the United States. According to Pew Research Center, roughly two-thirds of American teens use the app and a significant portion are using it almost constantly. Data.ai has found again and again, Americans are spending more time per user on TikTok than on YouTube on mobile — explaining why advertisers have been loath to abandon the platform even amid turbulence over policies.
Insider Intelligence projected that TikTok makes high-single-digit billions of dollars in U.S. advertising each year. If the deal actually happens as described, narratives around brand safety and data assurance might re-find their footing, and other “risk-averse” advertisers could return. For creators and small businesses that depend on TikTok Shop and live commerce, staying the same during the 120-day window will be important; there may be temporary hiccups in recommendation quality that reduce reach and sales.
The path to closing, key risks and what could delay the deal
Four months is ambitious for code migration, security re-architecture, board seating and CFIUS closing conditions. That being said, Oracle’s existing cloud footprint, earlier work on data isolation and a known playbook when it comes to privileged access management could shrink timelines. Look for independent auditors and transparency reports that will confirm assertions of data control and moderation independence.
Legal risk remains. Any future disputes over export permissions might come from shareholders, civil liberties groups or Chinese regulatory fora. There may be less likelihood of antitrust scrutiny with the consortium structure, but regulators could require behavioral conditions around data sharing, interoperability or advertising transparency.
There’s some brinkmanship, which the executive order replaces with a managed split. If done as intended, this provides a template for governing foreign-owned social platforms without yanking them off American smartphones. If deadlines slip or approvals falter, out comes the ban hammer and with it a new round of legal and geopolitical brinkmanship.
