Former U.S. President Donald Trump on Thursday signed an executive order affirming that his plan to sell TikTok’s U.S. operations to American and global investors meets the national security requirements set out in a 2024 law.
The new U.S.-based company will be valued at about $14 billion, according to Vice President JD Vance a figure far below some analysts’ estimates for the popular short-video platform.
Trump also announced a delay until January 20 in enforcing the law that would ban TikTok in the U.S. unless its Chinese parent company, ByteDance, sells its American assets. The extension aims to give more time to finalize the sale, secure investors, separate TikTok’s U.S. operations from its global platform, and obtain Chinese regulatory approval.
The executive order underscores progress in the negotiations but leaves key questions unresolved particularly regarding control of TikTok’s prized recommendation algorithm.
“There was some resistance on the Chinese side, but the fundamental goal was to keep TikTok operating while protecting Americans’ data privacy as required by law,” Vance told reporters at an Oval Office briefing.
According to the order, the algorithm will be retrained and monitored by the new U.S. company’s security partners, with operational control resting entirely with the U.S. entity.
Trump said he had spoken with Chinese President Xi Jinping, who gave his approval:
“We had a good talk. I told him what we were doing, and he said, ‘Go ahead with it.’”
Neither TikTok nor the Chinese embassy in Washington immediately commented on the announcement.
Trump credited TikTok which boasts 170 million U.S. users with helping his reelection bid last year. He has 15 million followers on his personal account, and the White House recently launched an official TikTok account.
“This is going to be American-operated all the way,” Trump said, adding that prominent investors such as Michael Dell (Dell Technologies), Rupert Murdoch (Fox Corp and News Corp), and “four or five other world-class investors” would join the deal.
The White House did not disclose how it determined the $14 billion valuation. By contrast, ByteDance recently valued itself at over $330 billion in a share buyback plan, with TikTok representing only a fraction of that revenue. Analysts at Wedbush Securities had previously estimated TikTok’s U.S. business excluding its algorithm at $30–40 billion as of April 2025.
Legal experts warned that uncertainties remain.
“The president has certified the deal, but he hasn’t provided much clarity on control of the algorithm,” said Alan Rozenshtein, a law professor at the University of Minnesota.
Oracle, Silver Lake and Others to Take Control
A 50% stake in TikTok U.S. will go to a consortium of investors led by Oracle and private equity firm Silver Lake, according to two sources familiar with the talks.
An additional 30% stake will be retained by existing ByteDance shareholders including Susquehanna International Group, General Atlantic, and KKR while ByteDance itself will hold less than 20% to comply with the 2024 law requiring a majority American controlled entity.
CNBC earlier reported that Abu Dhabi-based MGX, alongside Oracle and Silver Lake, is expected to secure a combined 45% stake in the U.S. entity, though the figures could shift as negotiations continue.
Republican lawmakers expressed cautious optimism but demanded stronger assurances:
“As the details are finalized, we must ensure this deal protects American users from the influence and surveillance of CCP-aligned groups,” said Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson.
Under the agreement, the new TikTok U.S. board will have seven members, with six Americans and one appointed by ByteDance, a senior White House official confirmed.
