Trump signs order declaring TikTok sale ready and values it at $14 billion
President Donald Trump on Thursday signed an executive order confirming that his plan to transfer TikTok’s American business to US and international investors meets national security requirements under a 2024 law.
Vice President JD Vance said the new US company is expected to be valued at about US$14 billion, a figure far lower than some analysts’ estimates for the short-video platform.
Trump also pushed back the enforcement of the law, which would ban TikTok unless its Chinese owners divest, to January 20. The delay gives more time to separate TikTok’s US assets from its global platform, secure investors, and obtain Beijing’s approval.
The order outlines that TikTok’s prized recommendation algorithm will be retrained and monitored by US security partners, with operational control transferred to the new joint venture. Trump said he had discussed the plan with Chinese President Xi Jinping, who expressed support.
“This is going to be American-operated all the way,” Trump told reporters, adding that prominent investors such as Dell Technologies founder Michael Dell, media tycoon Rupert Murdoch, and several other major backers would join the venture.
The White House did not explain how it arrived at the US$14 billion valuation, though ByteDance’s latest share buyback valued the parent company at more than US$330 billion. Analysts estimate TikTok’s worth at between US$30 billion and US$40 billion without its algorithm.
According to sources, Oracle and private-equity firm Silver Lake will take around half of TikTok US, while existing ByteDance investors will hold about 30%. Abu Dhabi-based MGX is also expected to participate. ByteDance itself would retain less than 20% to comply with the 2024 law.
Republican lawmakers said they want stronger assurances that the arrangement creates a clean break from Chinese influence. “As the details are finalised, we must ensure this deal protects American users from surveillance by CCP-linked entities,” three Republican representatives said in a joint statement.
TikTok, which has 170 million US users, has been credited by Trump as a factor in his reelection last year. He has more than 15 million followers on the app, and the White House recently launched its own official account.
Reuters
