The United States President Donald Trump has signed an executive order certifying that his plan to sell Chinese-owned TikTok’s U.S. operations to American and global investors meets the national security requirements of a 2024 law.
The new U.S. entity will be valued at about $14 billion, Vice President JD Vance said, far below analyst estimates of up to $40 billion. Enforcement of the law that bans TikTok unless its Chinese parent, ByteDance, divests U.S. assets has been delayed until January 20 to allow more time for restructuring and regulatory approvals.
Trump said the deal ensures TikTok will be “American-operated all the way,” with U.S. security partners retraining and monitoring its recommendation algorithm. He added that Chinese President Xi Jinping had signaled support.
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The White House said prominent investors, including Michael Dell, Rupert Murdoch, Oracle, Silver Lake, and Abu Dhabi-based MGX, will take major stakes in the joint venture, with Oracle and Silver Lake expected to control about half. Existing ByteDance shareholders will hold around 30%, while ByteDance itself would retain less than 20% to comply with U.S. law.
Despite assurances, questions remain about control of TikTok’s algorithm and ByteDance’s role.
U.S. lawmakers have demanded guarantees of a clean break with China, while Chinese media reports suggested ByteDance could still retain some operational influence.
TikTok, with 170 million American users, has been credited by Trump as a powerful political tool, including in his 2024 reelection campaign.
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The White House said the new entity will safeguard U.S. data privacy and digital security, though analysts warn the $14 billion valuation underscores uncertainty over how the platform will operate without direct access to ByteDance’s global resources.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
