Trump approves TikTok sale to US investors, sets valuation at $14 billion

President Donald Trump signed an executive order on Thursday, declaring that the planned sale of TikTok’s US operations to a group of American and global investors meets national security requirements under a 2024 law.

The order grants a crucial step toward allowing the popular video-sharing application to continue operating in the United States.

Vice President JD Vance announced that the new US-based company, which will take over the majority of TikTok’s American business, will be valued at USD 14 billion. This valuation has puzzled market analysts, who had previously estimated TikTok’s worth, excluding its prized algorithm, to be between USD 30 billion and USD 40 billion.

The executive order officially delays enforcement of the 2024 law, which would have banned the app, until January 20, to allow the divestiture to be completed.

Deal’s Structure, Security

The agreement is designed to address longstanding national security concerns over the Chinese government’s potential access to the data of over 170 million US users. Key components of the deal include:

• Ownership: A new joint-venture company will oversee TikTok’s US business, with American companies like Oracle and Silver Lake taking a majority stake (roughly 50 percent). ByteDance, TikTok’s Chinese parent company, will retain less than a 20 percent stake.
• Algorithm Control: The executive order mandates that the application’s powerful recommendation algorithm must be retrained and monitored by US security partners, with operational control transferred to the new joint venture.
• Board Oversight: The new entity will be governed by a seven-member board of directors, with Americans holding six of the seats.
• Chinese Approval: President Trump stated he had spoken with Chinese President Xi Jinping, who "gave the go-ahead" for the deal.

Unanswered Questions

Despite the White House declaring the deal a success in resolving national security concerns, analysts have pointed out several outstanding issues.

Legal experts and critics have questioned how effective the transfer of the algorithm will be, especially since Chinese media reports suggest ByteDance will still play a major operational role in the new company's structure, including managing e-commerce and branding.

Republican lawmakers, including Representative Brett Guthrie, issued a joint statement emphasizing the need for robust verification: "As the details are finalized, we must ensure this deal protects American users from the influence and surveillance of CCP-aligned groups.”