US President Donald Trump has authorised the continued operation of TikTok in the country following the signing of an executive order that mandates changes to the platform’s US operations and ownership.
The new agreement requires TikTok’s US application to be managed by a newly established joint venture (JV) company headquartered in the US. The JV company will have a valuation of around $14bn, according to US Vice President JD Vance.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under this framework, US investors will hold a majority stake in the JV.
ByteDance, TikTok’s parent company based in China, will retain less than 20% ownership. It will be allowed by the Trump administration to appoint only one director to a seven-member board and will not have representation on the security committee overseeing operations.
The board will be comprised of individuals with backgrounds in national security and cybersecurity.
Oracle has been designated as TikTok’s security provider for US operations. All US user data will be hosted on Oracle-controlled infrastructure within the country.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThis provision prohibits foreign access to sensitive information and aligns with requirements set by the Protecting Americans from Foreign Adversary Controlled Applications Act.
The agreement also transfers control of TikTok’s US algorithm, source code, and content moderation processes to the new American-led company.
All recommendation models, including algorithms, using US user data must be retrained and monitored by approved US security entities. Continuous oversight will apply to software updates, algorithms, and data transfers.
The executive order instructs the Attorney General to delay enforcement of the aforementioned Act for a period of 120 days to accommodate completion of the transfer.
President Trump said: “And if we can save it, I think that would be a very good thing. And I think it would be economically good for America.”
These measures aim to mitigate national security risks while allowing 170 million Americans to continue using TikTok under new compliance structures.
US lawmakers and administration representatives claim that this restructuring resolves concerns over foreign control, ensures data residency within national borders, and addresses influence over core technical functions.
The White House stated that TikTok’s continued operations could generate an estimated $178bn in US economic activity over four years and support thousands of jobs.
