Trump Signs Order Approving $14B TikTok Deal Amid Controversy
U.S. consortium with Oracle and Murdoch-backed investors set to acquire TikTok, but valuation and foreign ties spark political pushback.
Washington, September 26 EST: President Donald Trump has approved a $14 billion deal for TikTok’s U.S. business, but the move is already drawing heavy criticism in Washington. Lawmakers, investors, and analysts are questioning the price, the role of foreign money, and whether the deal truly cuts ties with TikTok’s Chinese owner, ByteDance.
Trump Signs Off on TikTok Sale
On September 25, Trump signed an executive order that cleared the way for the sale. The order gives TikTok’s buyers 120 days to finish the deal. Without it, the app could have faced a nationwide ban.
The new company will be worth about $14 billion. Major American backers include Oracle, Silver Lake, billionaire Michael Dell, and media owner Rupert Murdoch.
Foreign Stake Raises Questions
The deal also brings in international investors. Abu Dhabi’s MGX fund is taking a 15 percent stake and one seat on the company’s board. That role has raised eyebrows because of MGX’s reported ties to the Trump family’s cryptocurrency interests.
ByteDance, TikTok’s parent in Beijing, will hold a stake of under 20 percent. It will get just one board seat with no say in security matters. The app’s recommendation algorithm will be licensed to the U.S. company, but under government oversight.
Lawmakers Want More Details
Congress is not convinced. Rep. John Moolenaar, who leads the House Select Committee on China, has asked for an urgent White House briefing. He said the deal must “fully eliminate any operational or algorithmic ties to ByteDance,” according to the Associated Press.
Some lawmakers are also questioning the low valuation. Past estimates put TikTok’s U.S. operations at between $40 billion and $100 billion. The Washington Post noted that MGX’s role adds to the concern, since the fund’s political and business links could weaken the deal’s national security case.
Wall Street Reacts With Surprise
Market watchers were caught off guard. Yahoo Finance reported that many expected TikTok’s U.S. arm to sell for far more, given its massive popularity with younger users and its advertising growth potential.
Still, the biggest unknown is China’s approval. As analysts told ABC News, Chinese regulators could slow or even block the transfer of TikTok’s algorithm to the new U.S.-controlled company. That decision may decide whether the deal closes at all.
What It Means for Users
For now, TikTok remains online. The 120-day window keeps the app available while negotiations continue. But pressure is building. Congress is preparing hearings, watchdogs are asking questions about foreign investors, and critics are pushing for more transparency on how the deal is valued.
Whether this move creates a real break from Chinese control, or simply a political compromise, is still unclear. What is clear is that the fight over TikTok has shifted from the courts to the boardroom, and now to Capitol Hill.
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A political science PhD who jumped the academic ship to cover real-time governance, Olivia is the East Coast's sharpest watchdog. She dissects power plays in Trenton and D.C. without bias or apology.
