TikTok avoids US ban as Trump signs off on US-led deal
Trump’s order gives TikTok a new US-led structure. Marketers need to brace for change
The long-brewing TikTok drama may have finally found a resolution, at least on paper. President Donald Trump has approved a US$14 billion deal that will keep the video platform operational in the United States but under a drastically different ownership structure.
Backed by enterprise tech company Oracle, private equity firm Silver Lake, and the Abu Dhabi-based MGX fund, the new arrangement shifts TikTok’s US business into majority control by American and allied investors. ByteDance, the platform’s Chinese parent company, would retain a minority stake.
This article explores what the restructured TikTok means for brand strategists and marketers working in a politically charged digital landscape.
Short on time?
Here is a table of content for quick access:
- What just happened: TikTok’s new ownership structure
- The context: a five-year geopolitical standoff
- What marketers should know
Patrecia Meliana
TikTok's new ownership structure
Trump’s executive order, signed last Thursday, clears a path for TikTok to continue operations in the US by addressing the national security requirements of a 2024 law. That law required ByteDance to divest its US operations or face a nationwide ban.
The new US$14 billion TikTok entity will have its ownership split across three main buckets:
- Oracle, Silver Lake, and MGX: 45 percent combined stake
- ByteDance: just under 20 percent
- Other ByteDance investors: 35 percent
Vice President JD Vance confirmed the valuation and said that TikTok’s core recommendation algorithm will be “retrained and monitored” by security partners. The US-based entity will now oversee how that algorithm operates.
Trump also said Chinese President Xi Jinping had given verbal approval for the arrangement. However, China’s foreign ministry has not yet confirmed formal sign-off and stated only that business negotiations must comply with Chinese law and market rules.
The context: a five-year geopolitical standoff
TikTok has long been caught in the crossfire between Washington and Beijing. Since 2020, when Trump first attempted to ban the app, the company has become a flashpoint in ongoing US-China tech tensions.
This new deal seeks to neutralize national security concerns while keeping the app available to its 170 million US users. For ByteDance, it means giving up control. For Washington, it provides a political win with a visible shift in ownership.
But the deal also comes with complications. One of the lead investors, MGX, is an Emirati wealth fund whose chairman recently drew scrutiny for channeling US$2 billion into a Trump-affiliated crypto firm. That move coincided with MGX firms receiving AI chips and other tech access from the US, raising ethical concerns.
What marketers should know
Marketers may be relieved that TikTok is sticking around, but this deal signals deeper industry shifts that demand attention.
1. Platform risk is still in play
TikTok may have dodged a ban, but the regulatory spotlight is not going away. Ownership structures can change quickly, and political agendas often move faster than marketing roadmaps.
Action step: Reassess your platform mix. Avoid relying too heavily on TikTok, and make sure your content strategy includes platforms like YouTube Shorts and Instagram Reels.
2. The algorithm may not work the same way
If the recommendation algorithm is retrained under new US security guidelines, it could shift what content gets prioritized. Virality mechanics, audience targeting, and ad delivery may all be affected.
Action step: Monitor performance metrics closely. Run A/B tests to see if older strategies still work, and be ready to adapt quickly.
3. Political affiliations create brand exposure
MGX’s ties to the Trump family raise reputational questions. Brands running major campaigns on TikTok must now consider how association with politically sensitive investors could affect perception.
Action step: Review your brand safety policies. Ensure influencer and ad campaigns align with your values and will not be caught in political crossfire.
TikTok is safe for now, but the platform's future will continue to be shaped by global politics, national laws, and shareholder interests.
Marketers need to shift from relying on platform stability to planning for platform volatility. Stay agile, build redundancies, and make flexibility a feature of your strategy, not an afterthought.
