President Donald Trump on Thursday signed an executive order that allows TikTok's U.S. operations to be moved away from the social media app's China-based owner ByteDance.
The deal will see TikTok's U.S. operations separated from ByteDance to comply with a law that bans social media platforms subject to control by adversarial foreign governments like China.
A group led by software giant Oracle that includes private equity firm Silver Lake and UAE state-owned investment firm MGX will be the main investors in TikTok U.S., with a combined 45% ownership stake, according to a report by CNBC citing sources familiar with the matter.
The White House previously indicated Oracle and Silver Lake would be among the main owners of TikTok U.S. Earlier this week, a White House official said that ByteDance would own less than 20% of the firm, while existing shareholders and global firms would account for the remainder of the company's ownership. ByteDance investors would hold the 35% stake, per the report.
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Last year, Congress enacted a law signed by then-President Joe Biden that banned TikTok and other apps controlled by foreign adversaries amid national security concerns about data security and the use of platforms' algorithms for foreign influence operations.
The Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) requires that apps like TikTok be restricted in the U.S. unless they're divested from ownership subject to control by adversarial foreign governments, such as the Chinese Communist Party.
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After the law survived a Supreme Court challenge, it took effect on Jan. 19, 2025, though it allowed a 90-day extension.
ByteDance initially refused to sell TikTok and after President Trump took office, he issued an initial 75-day delay in enforcing the law.
That was followed by another 75-day extension in April and a 90-day extension in June that was due to expire earlier this month before it was extended.
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FOX Business' Sophia Compton and Reuters contributed to this report.
