TikTok’s Fate Sealed: Trump Signs Order to Shift Control to U.S. Investors While China Keeps the Algorithm

According to CNBC, President Donald Trump signed an executive order on 25 September 2025 confirming that TikTok’s American business will be led by U.S. investors, with ByteDance retaining a minority stake alongside its most critical asset—the recommendation algorithm.

The newly established TikTok U.S. entity will be jointly owned by American investors including Oracle, Silver Lake, and the AI and advanced technology investment firm MGX, who together will hold a 45% stake, while ByteDance is capped at a maximum shareholding of 19.9%. Under U.S. regulatory requirements, ByteDance’s stake must fall below the threshold of effective control, and Oracle will oversee cloud hosting for American user data.

Once the transaction is complete, ByteDance’s short-video business will be split into three versions: Douyin for China, TikTok for the U.S., and a separate TikTok for international markets. Vice President J.D. Vance said the new company is valued at about $14 billion, with American leadership directing the algorithmic content process to ensure it aligns with American values. Trump noted that Beijing had “fully supported” the deal as part of a negotiated compromise.