Former US President Donald Trump has signed an executive order clearing the sale of TikTok’s US operations, valuing the new company at $14 billion.
The order delays the ban on TikTok until January 20, 2026, giving time to finalize the transfer of assets from Chinese parent company ByteDance. The deal aims to protect American users’ data privacy while keeping TikTok active in the US, where it has 170 million users.
According to Vice President JD Vance, the new US-based company will control TikTok’s operations, while the app’s powerful recommendation algorithm will be retrained and monitored by American security partners.
Trump said he discussed the deal with Chinese President Xi Jinping, who gave his approval. Major investors expected in the new venture include Oracle, Silver Lake, MGX, Michael Dell, Rupert Murdoch, and other US firms.
Under the plan, Oracle and Silver Lake will take about a 50% stake in TikTok US, existing ByteDance investors will hold around 30%, while ByteDance itself will keep less than 20% to comply with US law.
Analysts, however, noted the valuation of $14 billion is far below earlier estimates of TikTok’s worth, which ranged from $30 billion to $40 billion without the algorithm. ByteDance, meanwhile, values itself at $330 billion.
Lawmakers in Washington insist the deal must ensure a clean break from Chinese influence, with most board seats of TikTok US reserved for Americans.
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