President Donald Trump on Thursday signed an executive order advancing his plan to transfer TikTok’s U.S. operations to American and international investors, a move he said would resolve national security concerns outlined in a 2024 law requiring the Chinese-owned app to be sold or face a ban.
The order delays enforcement of the law until January 20, giving additional time to finalize the deal. The new U.S.-based entity, expected to be valued at about $14 billion, will control TikTok’s domestic business and oversee the app’s critical recommendation algorithm under strict security oversight.
Vice President JD Vance said the plan was designed to keep TikTok operating for its 170 million American users while safeguarding data privacy. “There was some resistance on the Chinese side, but the fundamental thing we wanted to accomplish is to protect Americans’ data,” Vance told reporters at an Oval Office briefing.
Trump said he had spoken directly with Chinese President Xi Jinping, who signaled his approval of the arrangement. “We had a good talk. I told him what we were doing, and he said go ahead with it,” Trump said.
The deal is expected to involve a consortium of U.S. investors. Trump confirmed that Michael Dell, Rupert Murdoch, and several other high-profile figures would participate, while reports suggest Oracle, Silver Lake, and Abu Dhabi-based MGX are among those preparing to take significant stakes. According to sources familiar with the matter, Oracle and Silver Lake could secure close to a 50% share in TikTok U.S., with ByteDance investors retaining around 30%. ByteDance itself would hold less than 20% to comply with U.S. law.
Despite progress, questions remain about the role of TikTok’s Chinese parent company. Chinese media reports suggested ByteDance would continue to oversee e-commerce and branding operations through a new U.S. subsidiary, and that it could still receive revenue from the joint venture. However, those reports were later removed from websites.
Analysts also voiced concerns about the $14 billion valuation, which is far below some estimates of TikTok’s worth. ByteDance recently valued itself at more than $330 billion, while market analysts had placed TikTok’s standalone value at $30–40 billion earlier this year.
Republican lawmakers welcomed the announcement but urged greater scrutiny. “As the details are finalized, we must ensure this deal protects American users from the influence and surveillance of CCP-aligned groups,” said Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson in a joint statement.
The White House said the board of the new TikTok U.S. company would include seven members, six of them American, with ByteDance appointing one representative.
For Trump, who credits TikTok with helping energize his 2024 reelection campaign and boasts more than 15 million followers on the app, the deal is as much about politics as security. “This is going to be American-operated all the way,” the president declared.
