President Donald Trump on Thursday signed an executive order outlining a proposed sale of TikTok’s US operations. The deal would reduce Chinese ownership to 20 percent and place control of the platform in the hands of investors allied with Trump.
At a signing ceremony at the White House, Trump described the future management of the US version of TikTok, stating it would be overseen by “highly sophisticated” investors including Larry Ellison, founder of cloud computing giant Oracle, technology investor Michael Dell, and media magnate Rupert Murdoch.
What is the value of the new TikTok US company?
Vice President JD Vance, who led the team tasked with finding a solution for TikTok, confirmed that the newly formed U.S.-based entity will be valued at approximately $14 billion.
Vance acknowledged that the final price would ultimately be determined by the investors, but stressed that this figure is substantially below some analyst projections for the popular short-form video platform.
How will US TikTok’s algorithm be handled?
Trump assured that the US version of TikTok would incorporate a domestic iteration of the app’s proprietary algorithm, often described as its “secret sauce,” which has been central to TikTok’s rapid global growth.
A White House official added that TikTok’s US algorithm would be “continuously monitored” to ensure it is “not being unduly influenced.”
Why has enforcement of the US ban on TikTok been delayed?
Trump has postponed enforcement of a law requiring ByteDance, TikTok’s Chinese parent company, to divest its US operations or face a ban. The latest extension moves the deadline to 23 January 2026, providing additional time to separate TikTok’s US operations from the global platform, secure investment commitments, and gain approval from Chinese authorities.
The law was initially passed under President Joe Biden’s administration and was intended to mitigate concerns that China could exploit TikTok to gather data from Americans or exert influence via its algorithm.
Has China approved the TikTok US deal?
Trump stated that Chinese President Xi Jinping approved the transaction during a phone call last week.
“(I have) great respect for President Xi, and I very much appreciate that he approved the deal, because to get it done properly, we really needed the support of China,” Trump said.
Following the call, Chinese state broadcaster CCTV reported that Xi emphasised Beijing’s support for market-based negotiations conducted in accordance with Chinese law. TikTok has not provided any comment on the deal, and Chinese officials have remained largely silent.
What happens next?
The executive order represents a major step towards creating a US-controlled version of TikTok, addressing national security concerns while retaining the platform’s global popularity. The deal will now proceed through investment and regulatory channels, with investors like Ellison, Dell, and Murdoch expected to play key roles in shaping the platform’s future.
