On Thursday, President Donald Trump signed an executive order to advance the sale of TikTok’s US operations, which are owned by China, to domestic and international investors, addressing national security concerns outlined in a 2024 law.
According to Vice President JD Vance, the new US entity will be valued at approximately $14 billion, much lower than some analysts’ projections for the popular video-sharing app.
Trump postponed the enforcement of a ban until January 20, requiring TikTok’s Chinese owners to sell the app. This move is part of efforts to separate TikTok’s US assets from the global platform, secure American and international investors, and gain approval from the Chinese government.
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The executive order’s release indicates progress in the sale of TikTok’s US assets, although key details remain, such as how the US entity will utilize TikTok’s critical recommendation algorithm.
“There was some resistance from the Chinese side, but our primary goal was to keep TikTok operational while ensuring American data privacy is protected by law,” Vance stated during an Oval Office briefing.
Trump’s order stipulates that the algorithm will be retrained and monitored by the US company’s security partners, with control given to the new joint venture.
Trump mentioned that Chinese President Xi Jinping had shown support for the plans. “I talked to President Xi,” Trump said. “We had a good discussion, and he encouraged us to proceed.”
The Chinese embassy in Washington and TikTok have yet to comment on Trump’s actions.
Trump attributed TikTok, which boasts 170 million US users, to helping him secure reelection last year. Trump personally has 15 million followers on TikTok, and the White House recently launched an official account.
“This will be entirely American-operated,” Trump declared.
He noted that Michael Dell, founder and CEO of Dell Technologies, Rupert Murdoch, chairman emeritus of Fox Corp and News Corp, and a few other prominent investors would be involved in the deal.
The White House hasn’t clarified how it determined the $14 billion valuation.
ByteDance, TikTok’s Chinese parent company, values itself at over $330 billion based on its new employee share buyback plan. TikTok accounts for a small portion of its total revenue.
According to Wedbush Securities analyst Dan Ives, TikTok was valued at $30 billion to $40 billion without the algorithm as of April 2025.
Alan Rozenshtein, a University of Minnesota Law School professor, noted the executive order left unresolved questions, such as whether ByteDance would retain control over the algorithm.
“The issue is the president has approved the deal but hasn’t detailed information on the algorithm,” he commented.
Chinese media on Friday portrayed a different scenario, suggesting ByteDance would continue to play a significant role.
ByteDance will create a new U.S. company as part of TikTok’s US restructuring, according to Chinese media outlet LatePost, citing sources.
The new entity will handle e-commerce, branding, and international operations, the report stated.
The report also mentioned the joint venture, valued at $14 billion by the White House, would oversee U.S. digital security, content protection, software, and related local businesses.
Another financial magazine, Caixin, reported that ByteDance intends to establish a TikTok US entity receiving some revenue from the new venture.
Both reports were removed from their websites later on Friday.
The White House and ByteDance have not yet commented.
Oracle, others to own TikTok in US
Oracle and private-equity firm Silver Lake, along with another investor, will acquire around 50% of TikTok US, according to sources.
Existing ByteDance shareholders will hold approximately 30%, with investors like Susquehanna International Group, General Atlantic, and KKR involved.
Due to high investor interest, the 50% stake could change, the source noted.
Oracle and Silver Lake have not responded to requests for comment.
CNBC reported that Abu Dhabi-based MGX, Oracle, and Silver Lake are set to be key investors in TikTok US, holding a combined 45% stake.
MGX has not responded to a Reuters request for comment on the CNBC report.
Republican lawmakers expressed a need for more deal specifics to ensure a clean break from China. “As details finalize, we must ensure this deal protects American users from CCP-aligned group influence and surveillance,” said Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson.
The agreement includes ByteDance appointing one of seven board members for the new entity, with Americans filling the other six seats, a senior White House official stated on Saturday.
ByteDance will hold less than 20% of TikTok US to comply with the 2024 law’s requirements to divest US assets by January 2025.
