American small business owners can take a deep breath: President Donald Trump signed an executive order on Thursday, enabling TikTok’s divestiture from China-based ByteDance to a new U.S.-based joint venture.
Under the agreement, ByteDance will retain less than 20% of TikTok, while a group of American investors will control the remaining 80%. This arrangement satisfies the criteria for a “qualified divestiture,” allowing TikTok to continue operating legally within the United States.
It’s important to note that President Trump’s signing of the executive order does not mean the divestiture is finalized. Instead, the order signifies his approval of the framework agreement, effectively “blessing” the structure of the deal and giving the parties 120 days, until Jan. 23, to complete the legal, financial, and operational details.
Currently, it’s unclear who the American investors are. While President Trump did float some names, it has not been confirmed. Vice President JD Vance says that additional information will be revealed soon. While the general terms of the agreement are set, it will take time for the various parties to finalize the finer details of the legal, financial and operational specifics.
During Thursday’s signing, President Trump acknowledged TikTok’s importance to small business owners. Over the past six months, he revealed that he has received calls from small business owners explaining why saving TikTok was critical for their businesses.
President Trump’s acknowledgement, along with the signing of the executive order, provides relief for small business owners who rely heavily on TikTok for marketing and sales. It offers reassurance that the platform has a strong chance of remaining operational in the United States, allowing small businesses to continue leveraging it to reach customers, drive engagement, and maintain their growth strategies without disruption.