WASHINGTON: President Donald Trump has signed an executive order approving the long-debated sale of TikTok’s U.S. operations, valuing the popular video app at about $14 billion a figure far lower than many analysts had expected.
The move comes under a 2024 U.S. law requiring Chinese owned TikTok to either sell its American business or face a ban. Enforcement of the ban has now been delayed until January 20, giving time to finalize the deal and secure Chinese approval.
Under the agreement, a new U.S. based company will run TikTok, with major investors including Oracle, Silver Lake, and Abu Dhabi’s MGX, alongside American tech billionaire Michael Dell and media mogul Rupert Murdoch. Together, Oracle and Silver Lake are expected to take around 50% ownership, while ByteDance TikTok’s Chinese parent company would hold less than 20% to meet legal requirements.
A key sticking point remains TikTok’s recommendation algorithm, widely seen as the heart of its success. Trump said the algorithm will be retrained, closely monitored, and managed by U.S. security partners. Six of seven board seats will go to American members, ensuring Washington has control.
Vice President JD Vance told reporters that while there was “some resistance” from Beijing, both sides agreed to keep TikTok alive in the U.S. while protecting Americans’ data. Trump claimed he personally secured Chinese President Xi Jinping’s approval during recent talks.
The White House did not explain how it arrived at the $14 billion valuation, especially as ByteDance currently values itself at $330 billion and some analysts placed TikTok’s worth at $30–40 billion even without the algorithm.
TikTok, with 170 million U.S. users and massive cultural influence, has even played into Trump’s political fortunes he boasts 15 million followers on his own account. The White House also recently launched an official TikTok channel.
Still, critics warn the details remain vague. Legal experts question whether ByteDance could still exert influence through its algorithm, while Republican lawmakers have demanded a “clean break” from Chinese control.
Despite uncertainties, Trump hailed the deal as a win: “This is going to be American operated all the way,” he said, framing it as both a national security safeguard and a way to keep TikTok accessible to millions of American users.
