President Donald Trump has signed an executive order moving forward with the plan to sell TikTok’s U.S. operations to American and global investors, in line with national security requirements set by a 2024 law.
Vice President JD Vance said the new company would be valued at about $14 bn, a figure far lower than some analyst estimates. Trump also delayed enforcement of the law banning TikTok until January 20, allowing time to finalise the restructuring, bring in investors and gain approval from Beijing.
Protecting Data and Securing Approval
Vance told reporters there had been «some resistance on the Chinese side» but stressed that the priority was to keep TikTok running while safeguarding American users’ data. Trump said Chinese President Xi Jinping had signalled his approval during recent talks.
The order requires TikTok’s recommendation algorithm to be retrained and monitored by U.S. security partners, with operations placed under the control of the new joint venture.
TikTok, which has 170 mln users in the United States, has played a role in Trump’s political campaigning. He has credited the platform with helping him win re-election, while his personal account has more than 15 mln followers. The White House also launched an official TikTok channel last month.
Investors and Valuation
Trump said investors would include Michael Dell, Rupert Murdoch and several other leading figures, though the White House did not explain how the $14 bn valuation was calculated. ByteDance, TikTok’s parent company, values itself at over $330 bn and continues to generate most of its revenue from outside TikTok.
Analysts note the app could be worth $30–40 bn without the algorithm. Questions remain over whether ByteDance will maintain any control over it, with Chinese media reporting the company plans to create a U.S. subsidiary for e-commerce and international operations that may still share revenue with the joint venture.
Oracle and Silver Lake to Take Control
Oracle and private equity firm Silver Lake are expected to take about 50% of TikTok U.S., while existing ByteDance shareholders may hold around 30%. Reports suggest Abu Dhabi-based MGX could also join the group.
Republican lawmakers have demanded clarity to ensure the deal creates a clean break with China. Under the agreement, ByteDance will appoint one of seven board members, with the other six seats filled by Americans. The company’s ownership will be cut to below 20% to comply with U.S. law, which required ByteDance to divest TikTok’s U.S. assets or face a shutdown.
