US President Donald Trump yesterday signed an executive order outlining plans to sell TikTok’s US operations, currently owned by Chinese company ByteDance, to US and global investors. The new US-based company is valued at approximately $14 billion, according to Vice President J.D. Vance.
The executive order delays until January 20 the implementation of a law that would ban TikTok in the US unless its Chinese owners divest the app. The move aims to keep TikTok running while ensuring American user privacy is protected, Vance said in an Oval Office briefing.
Under Trump’s plan, TikTok’s algorithm—the app’s most valuable asset—will be retrained and monitored by US security partners and controlled by the new joint venture. Trump confirmed that Chinese President Xi Jinping has approved the arrangement.
“This is going to be completely American-owned,” Trump said, adding that prominent investors, including Michael Dell, Rupert Murdoch, and several others, will participate in the deal.
TikTok, which has 170 million US users, has not yet commented on the executive order. Analysts note that the app’s $14 billion valuation is below some estimates, which placed its US business between $30 billion and $40 billion excluding the algorithm.
Legal experts and analysts have raised questions about the deal, particularly regarding ByteDance’s continued involvement with the algorithm. Chinese media reports also suggest ByteDance may retain a role in operations.
The new joint venture will oversee US digital security, content and software protection, and related domestic business activities, according to the White House.
Trump has highlighted TikTok’s influence, noting his personal account has 15 million followers, and credited the platform with contributing to his re-election campaign last year.
