WASHINGTON – US President Donald Trump has signed an executive order to move forward with the sale of TikTok’s US operations, aiming to meet national security requirements under a 2024 law.
According to the order, the popular short video app will be sold to US and global investors. Vice President JD Vance stated that the new US-based company will be valued at around $14 billion, far below some earlier estimates.
Trump announced a delay in enforcing the ban on TikTok until January 20. This extension gives more time to finalize the deal, secure approval from China, and set up the new company. The restructuring would allow the app to continue operating in the United States while addressing concerns about data privacy.
The agreement outlines that TikTok’s recommendation algorithm will be retrained and monitored by American security partners. The US joint venture will oversee its operation. Trump added that Chinese President Xi Jinping had shown approval for the plan.
TikTok currently has more than 170 million US users. Trump himself has credited the platform with helping him during his re-election campaign and has 15 million followers on his personal account.
The new ownership structure will include Oracle, Silver Lake, and Abu Dhabi-based MGX, who are expected to secure a major stake in TikTok US. ByteDance, TikTok’s parent company, will retain less than 20% to comply with legal requirements.
Reports in Chinese media suggest that ByteDance will still play a limited role, mainly in e-commerce and branding operations. However, US officials insist that the deal ensures American oversight of TikTok’s core functions, particularly its algorithm and data security.
Analysts believe the $14 billion valuation is conservative, with some estimating TikTok’s worth at up to $40 billion. Despite unanswered questions about the algorithm’s long-term control, the executive order marks a significant step toward resolving one of the most high-profile technology disputes between Washington and Beijing.
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