President Donald Trump signed an executive order Thursday, setting the framework for the sale of Chinese-owned TikTok’s U.S. operations to a group of American and global investors. The measure is intended to address national security provisions outlined in the 2024 law mandating the divestiture.
Vice President JD Vance disclosed that the new TikTok U.S. entity would be valued at roughly $14 billion, a figure considerably lower than some analyst forecasts. Enforcement of the law banning TikTok will now be postponed until January 20, granting additional time for the divestment process, restructuring of the app’s U.S. assets, and necessary approvals from Chinese regulators.
Publication of Trump’s order signifies progress toward finalizing the TikTok U.S. sale, although key aspects remain unresolved, particularly regarding the use of TikTok’s proprietary recommendation algorithm. The executive order stipulates that the algorithm must be retrained and overseen by the security partners of the new U.S. company, with operational control to be held by the new joint venture.
There was some reluctance on the Chinese side, but the main priority was to maintain TikTok’s operations and ensure American data privacy, said Vance at a White House briefing. Trump added that he had spoken to Chinese President Xi Jinping about the plan, who he said signaled his approval.
Neither TikTok nor the Chinese embassy in Washington have commented on the executive order.
With 170 million American users, TikTok continues to have a significant influence in the U.S., and President Trump, who now has 15 million followers on the platform, has attributed part of last year’s election success to the app. An official White House TikTok account was also launched last month.
ByteDance, TikTok’s Chinese parent, has valued itself at over $330 billion in recent internal share buybacks, though TikTok itself constitutes only a small fraction of total revenue. Wedbush Securities estimated TikTok’s value (excluding the algorithm) at $30-40 billion as of April 2025.
Several sources stated that the consortium includes Oracle and private equity group Silver Lake to acquire around 50% of TikTok U.S., while existing ByteDance shareholders will retain approximately 30%. Major ByteDance investors include Susquehanna International Group, General Atlantic, and KKR. According to sources, interest from potential investors remains high, and the deal structure may still evolve.
The agreement encompasses significant governance provisions. ByteDance will be allowed to name one member on the seven-seat board of the new U.S. entity, while American appointees will hold the remaining six seats, according to a senior White House official. To comply with the 2024 law, ByteDance’s stake in TikTok U.S. will fall below 20%, ensuring the company relinquishes operational control.
Republican lawmakers in the House are demanding greater transparency regarding the agreement, stressing the need to fully cut any major ties with China.
