US President Donald Trump has signed an executive order formalising his plan to transfer control of TikTok’s US operations to a new company owned by American and global investors, in compliance with a 2024 national security law that required Chinese parent ByteDance to divest its US assets.
The new US entity is expected to be valued at around $14 billion, according to Vice President JD Vance, although the figure falls well below earlier analyst estimates that valued TikTok at $30–$40 billion without its recommendation algorithm.
Trump delayed enforcement of the ban on TikTok until January 20, 2026, providing time to finalise ownership transfers, retrain the app’s algorithm, and secure Chinese regulatory approvals.
Control of the Algorithm Still Unclear
Under the executive order, TikTok’s prized recommendation algorithm will be retrained and monitored by US security partners, with operational oversight falling to the new joint venture.
“There was some resistance on the Chinese side, but the fundamental thing that we wanted to accomplish is that we wanted to keep TikTok operating, but we also wanted to make sure that we protected Americans’ data privacy,” Vance said at an Oval Office briefing.
However, analysts and legal experts noted the order left questions about how much influence ByteDance would retain. Reports in Chinese media suggested that the company may continue to play an operational role, including receiving revenue from TikTok’s US unit though these reports were later removed.
China and the US Weigh In
Trump said he had spoken with Chinese President Xi Jinping, who signalled approval of the restructuring. China’s Foreign Ministry struck a cautious note, emphasising that any deal must comply with local regulations while calling on the US to provide a “fair, open and non-discriminatory environment” for Chinese companies.
TikTok, which has 170 million US users, did not immediately comment.
Investors and Ownership
The White House confirmed that the new TikTok US company will be backed by a group of high-profile investors. Trump named Michael Dell (Dell Technologies), Rupert Murdoch (News Corp/Fox), and “four or five world-class investors” as part of the group.
Two sources familiar with the deal said that:
- Oracle and private equity firm Silver Lake will take about 50% ownership.
- Existing ByteDance investors (including General Atlantic, KKR, and Susquehanna International Group) will retain roughly 30%.
- Abu Dhabi’s MGX is also reported to be involved, with combined foreign investors potentially holding 45%.
ByteDance itself is expected to keep less than 20% in the US entity, in line with the law’s requirements.
Political Pushback
Republican lawmakers welcomed progress but called for greater transparency. “As the details are finalised, 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.
A senior White House official confirmed that ByteDance will appoint one of seven board members for TikTok US, with Americans holding the remaining six seats.
The deal still faces hurdles, including:
- Final Chinese regulatory approval.
- Technical challenges in separating TikTok’s algorithm for US control.
- Political scrutiny from Congress over whether the deal constitutes a genuine break from ByteDance.
For Trump, TikTok is not only a business issue but also a political one, he has 15 million followers on the app, and his campaign has credited TikTok with helping him win re-election in 2024.
“This is going to be American-operated all the way,” Trump said.
