Trump Approves TikTok Sale Plan Under $14 Billion U.S. Deal
President Donald Trump signed an executive order on Thursday approving plans for a new U.S.-based company to acquire TikTok’s American operations, in line with a 2024 law requiring the app’s Chinese owners to divest. The move delays enforcement of the ban on TikTok until January 20, giving time to finalise the restructuring.
The new company will be valued at around $14 billion, Vice President JD Vance said, though analysts had expected far higher figures. Trump said the deal would ensure TikTok continues operating in the U.S. while safeguarding American users’ data.
U.S. Control and Algorithm Oversight
Trump stated the algorithm, TikTok’s most valuable asset, would be retrained and placed under the control of the new U.S. joint venture, monitored by security partners. He also said Chinese President Xi Jinping had agreed to the arrangement following direct talks.
However, questions remain. Some Chinese media outlets reported that ByteDance, TikTok’s parent company, would retain an operational role through a new U.S. entity overseeing e-commerce, branding, and international connections. Reports also suggested ByteDance could receive revenue from the U.S. joint venture.
Investors and Ownership Structure
The White House said high-profile investors, including Michael Dell and Rupert Murdoch, would join the deal alongside several other global backers. Oracle and Silver Lake are expected to take about a 50% stake in TikTok U.S., while existing ByteDance shareholders such as KKR, Susquehanna International, and General Atlantic may hold another 30%.
ByteDance itself will retain less than a 20% stake, with the new entity’s board consisting of seven members—six Americans and one ByteDance appointee—to comply with U.S. law. Abu Dhabi’s MGX has also been linked to the investment group.
Lawmakers Seek Clarity
Republican lawmakers welcomed progress but demanded assurances that the deal would provide a clean break from Chinese influence. “We must ensure this deal protects American users from CCP-aligned groups,” said Representatives Brett Guthrie, Gus Bilirakis and Richard Hudson.
Analysts and legal experts noted uncertainty over control of TikTok’s algorithm. “The president has certified the deal, but not explained how algorithm oversight works,” said University of Minnesota professor Alan Rozenshtein.
With 170 million U.S. users, TikTok remains a major political and cultural force. Trump, who has credited the platform with helping his reelection and has 15 million followers himself, insisted: “This is going to be American-operated all the way.”
with inputs from Reuters
