Trump signs order declaring TikTok sale ready and values it at $14 billion
The order fulfills requirements under a 2024 law mandating TikTok’s Chinese parent, ByteDance, divest its American business or face a nationwide ban. Trump delayed enforcement of that law until January 20, giving negotiators nearly four more months to finalize a deal, secure investors, and address regulatory hurdles both in Washington and Beijing.
Vice President JD Vance placed a $14 billion valuation on the U.S. venture, a figure that surprised some analysts who had projected much higher numbers given TikTok’s global user base and advertising potential. “There was some resistance on the Chinese side, but the fundamental thing we wanted to accomplish was to keep TikTok operating while protecting Americans’ data privacy as required by law,” Vance said.
The executive order outlines strict requirements for TikTok’s algorithm, the app’s most valuable and controversial asset. Under Trump’s plan, the recommendation engine will be retrained and monitored by U.S.-based security partners, ensuring operational control remains firmly within the new joint venture.
Trump said he discussed the plan with Chinese President Xi Jinping, who signaled a willingness to allow the sale to proceed. “I spoke with President Xi. We had a good talk. I told him what we were doing, and he said go ahead with it,” Trump said during remarks at the Oval Office.
The Chinese embassy in Washington declined to immediately comment, and TikTok itself remained silent on the White House’s move. Industry analysts cautioned that Beijing’s final approval may still hinge on how much control the U.S. entity exerts over TikTok’s core technology.
Trump emphasized that the restructured TikTok would be “American-operated all the way.” He also highlighted his own role on the platform, noting his 15 million followers and crediting the app with boosting his reelection campaign last year. The White House recently launched an official TikTok account, underscoring how deeply the app has embedded itself into U.S. political life.
The investor group backing the venture includes some of the biggest names in business and media. Trump named Michael Dell, founder of Dell Technologies, and Rupert Murdoch, the chairman emeritus of Fox Corp and News Corp, as lead partners. “Probably four or five absolutely world-class investors” will round out the group, Trump added.
Analysts said the valuation figure suggests the administration is prioritizing security compliance and domestic control over maximizing market price. By comparison, earlier attempts to force a sale under the Biden administration had floated numbers more than double the current figure.
The decision represents a significant pivot for Trump, who once described TikTok as a national security threat but now portrays it as a valuable communications tool. The president said the deal balances both concerns, keeping the app’s popularity alive while moving sensitive data out of China’s reach.
Still, many details remain unresolved. Among them: how the retrained algorithm will perform compared to the existing model, how advertising revenue will be distributed, and whether the new ownership structure can satisfy skeptical lawmakers in both parties.
Democrats, who largely backed the original divestiture law, have expressed concern that Trump’s team may cut corners in pursuit of political advantage. Republicans remain divided, with some praising the president’s assertiveness while others question why TikTok should be salvaged at all.
For TikTok’s 170 million American users, the announcement offers temporary clarity but not final certainty. With the enforcement deadline now pushed to January, the app will remain operational during the holiday season, even as negotiations continue behind closed doors.
The executive order also sets up months of complex regulatory reviews, including oversight by the Committee on Foreign Investment in the United States (CFIUS), which must vet the ownership structure for national security risks. International investors will also need approval before joining the venture.
Critics argue that the White House’s heavy involvement risks politicizing the deal. Trump’s own embrace of TikTok, both as a political megaphone and as a campaign tool, has further blurred the line between national security and personal political gain.
For now, however, the administration is touting the move as a win-win. “This is the best of both worlds,” Trump said. “We’re protecting Americans’ data, and we’re keeping TikTok alive in the United States.”
