President Donald Trump signed an executive order on Thursday approving the sale of TikTok’s US operations to American and global investors, aiming to meet national security requirements outlined in a 2024 law. The deal is valued at approximately $14 billion, far below some analyst estimates, and reflects efforts to secure US control over the popular short-video platform while protecting user data.
Vice President JD Vance confirmed that the sale plan includes retraining and monitoring TikTok’s recommendation algorithm under US security oversight. Trump delayed enforcement of the law banning TikTok until January 20, allowing time to finalize the sale and align investors, while seeking China’s approval for the plan.
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Trump stated that Chinese President Xi Jinping indicated approval of the proposed sale during their conversation. Trump emphasized that the US entity will fully operate TikTok while safeguarding Americans’ data privacy, describing the move as both strategic and protective for national interests.
The new TikTok US company will involve prominent investors, including Michael Dell, Rupert Murdoch, Oracle, and private equity firm Silver Lake, holding a combined 50% stake. ByteDance, TikTok’s Chinese parent company, will retain less than 20% ownership to comply with the 2024 law, while existing shareholders hold roughly 30%.
Concerns remain regarding the algorithm’s management, with legal and technical experts noting that the order provides limited details on operational control. Chinese media reports suggest ByteDance may continue playing a role in US operations, especially in e-commerce, branding, and international connections, highlighting remaining uncertainties.
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Republican lawmakers have emphasized the need for clarity to ensure the deal represents a full break from Chinese influence. The White House confirmed that the US board will hold six of seven seats, further ensuring American oversight of the new entity while the sale process moves forward.