Trump Approves $14B TikTok Sale to U.S. Investors
President Donald Trump signed an executive order approving the sale of TikTok’s U.S. operations to American and global investors. The move is aimed at addressing national security concerns outlined in a 2024 law. According to Vice President JD Vance, the new company will be valued at approximately $14 billion, significantly lower than earlier analyst estimates.
The order also delays until January 20 enforcement of the law requiring TikTok’s Chinese owners to divest their U.S. assets. This delay provides time to finalize agreements, secure investor participation, and gain Chinese government approval. The executive order marks progress, though key details remain unresolved, particularly how TikTok’s recommendation algorithm will be managed.
Algorithm Oversight and Security Measures
Trump’s order specifies that the algorithm, considered TikTok’s most valuable asset, will be retrained and monitored by U.S. security partners. Control of its operation will rest with the newly formed joint venture. This ensures compliance with U.S. data privacy laws while maintaining platform continuity.
Vance noted there had been resistance from the Chinese side but emphasized the deal balances continued TikTok operations with protection of American user data. Trump confirmed that Chinese President Xi Jinping gave his approval for the plan during their recent conversation.
Investors and Political Context
Trump highlighted that several high-profile figures, including Michael Dell and Rupert Murdoch, will participate in the investment, alongside other world-class backers. Reports suggest Oracle and Silver Lake will collectively own 50% of TikTok’s U.S. entity.
TikTok, which boasts 170 million U.S. users, played a visible role in Trump’s reelection campaign. The president has 15 million followers on the platform, while the White House recently launched an official account. Trump reaffirmed that the new TikTok operation would be “American-operated all the way.”
