Trump Approves TikTok Deal: Oracle and U.S. Partners Take Control of American Operations
President Donald Trump has approved a plan separating TikTok’s U.S. operations from its Chinese parent company, ByteDance, under a joint venture backed by major American firms. The executive order, signed Thursday, confirms that the arrangement satisfies requirements outlined in a 2024 law mandating ByteDance’s divestiture of the video-sharing app’s U.S. business.
Trump approves TikTok’s U.S. takeover plan with Oracle, Dell, and Fox backing a joint venture separating operations from ByteDance’s China HQ.
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Reports indicate that Oracle chairman Larry Ellison and Dell Technologies CEO Michael Dell are part of a consortium leading the takeover of TikTok’s American operations. Fox Corp. is also in talks to join as a backer of the newly formed joint venture.
White House Press Secretary Karoline Leavitt explained that TikTok’s algorithm, considered the platform’s most valuable asset, will now be controlled by the U.S.-owned venture. Under the deal, ByteDance will retain a 19.9% stake, while existing investors will hold 35% of the new entity.
Oracle, which already manages TikTok’s cloud services, will oversee the app’s data operations. Leavitt added that the joint venture’s board will include seven members, six of whom will be American.
Ellison’s involvement ties TikTok to broader developments in the media and technology sectors. The Oracle founder is also the principal backer of Skydance Media, which recently acquired Paramount and is reportedly considering a bid for Warner Bros. Discovery. Fox’s participation would introduce another major media player into TikTok’s evolving corporate structure.
Analyst Rich Greenfield noted that the new venture structure grants all members equal ownership, preventing Ellison from integrating TikTok’s U.S. business into Paramount. He emphasized that user and advertiser experiences will remain unchanged and that U.S. users will not be required to download a new app immediately. If a new app were to be introduced later, existing user data and activity would carry over seamlessly.
The 2024 divestment law, upheld by the Supreme Court earlier this year, requires ByteDance to relinquish its U.S. holdings in TikTok or face a nationwide ban. Trump has extended the compliance deadline multiple times, and the latest executive order provides additional time for the joint venture to finalize its operations.
