President Donald Trump signed an executive order on Thursday announcing that he would sell the U.S. business of China-owned Tiktok to us, and investors around the world will address national security requirements in the 2024 law.
Vice President JD Vance said the new U.S. company would be worth about $14 billion, which is well below analyst estimates on popular short video apps.
Trump postponed the enforcement of the law to January 20 on the ban on the app, which sold it unless its Chinese owners extracted Tiktok’s U.S. assets on global platforms, lineups of U.S. and other investors and obtained approval from the Chinese government.
The release of the executive order shows that Trump is making progress in selling Tiktok’s U.S. assets, but a lot of details are needed to be enriched, including how U.S. entities will use Tiktok’s most important assets, its proposed algorithm.
“There are some resistances in China, but the basic measure we want to accomplish is that we want to keep Tiktok running, but we also want to make us protect American data privacy as required by law,” Vance told reporters in the Oval Office.
Trump’s order said the algorithm will be retrained and monitored by security partners of U.S. companies, and the algorithm will operate under the control of the new joint venture.
Trump said Chinese President Xi Jinping has expressed approval of the plan. “I’m with President Xi Jinping,” Trump said. “We had a good chat, I told him what we were doing, and he said keep going.”
The Chinese Foreign Ministry reiterated on Friday that the government “respects the will of enterprises and welcomes them to conduct business negotiations in accordance with market rules to achieve solutions that comply with Chinese laws and regulations and achieve a balance of interests.”
Ministry spokesman Guo Jiakun said in a press conference: “We hope the United States will provide an open, fair and non-discriminatory business environment for Chinese companies.”
Tiktok did not immediately comment on Trump’s actions.
Trump attributed Tiktok, which has 170 million US users, who helped him win Reelection last year. Trump has 15 million followers on his personal Tapptok account. The White House also launched an official Tiktok account last month.
“It will always be American,” Trump said, Michael Dell, founder, chairman and CEO of Dell Technologies; Rupert Murdoch, chairman emeritus Fox News owner Fox and newspaper publishers News GroupAnd, “probably four to five absolutely world-class investors” will be part of the deal.
The White House has no discussion on how to propose it at a $14 billion valuation.
Tiktok’s Chinese parents Biteance, currently value It itself has more than $330 billion under its new employee stock buyback program. Tiktok contributes a small portion of the company’s total revenue.
According to Wedbush Securities analyst Dan Ives, Tiktok was worth $30 billion to $40 billion as of April 2025.
Alan Rozenshtein, a professor at the University of Minnesota Law School, said the executive order left unresolved questions, including whether the bite would still control the algorithm.
“The problem is that the president has certified the deal, but he has not provided a lot of information about the algorithm,” he said.
Chinese media also painted different pictures of the Tiktok protocol on Friday, and Suifesting Biteance will continue to play an important or operational role.
Biteedance to build a new company as part of Tiktok’s US operations (Chinese media) restructuring LatePost Report, citing sources.
The new company will be established by Biteedance and will be responsible for e-commerce, brand operations and interconnection with international businesses, the report said.
The report also said that, as the White House described, the $14 billion joint venture will be responsible for U.S. digital security, protection of content and software, and related local businesses.
Another Chinese financial magazine, CaixinIt is also reported that people are planning to establish a Tiktok US entity that will earn some revenue from the new Tiktok joint venture.
Both reports were removed from their respective websites later on Friday. The White House and Bite did not immediately respond to requests for comment.
Oracle and others own Tiktok in the United States
A team of three investors, including Oracle and private equity firm Silver Lake, will collect about 50% of the shares at Tiktok US, two sources from two sources.
One of the sources said a group of shareholders on the bike would hold about 30 percent of the shares. Biteedance’s current investors include Susquhanna International Group, General Atlantic and KKR.
Sources noted that 50% of the shares are still likely to change given investors’ strong interest in Tiktok.
Oracle and Silver Lake did not immediately respond to requests for comment.
CNBC Abu Dhabi-based MGX, Oracle and Silver Lake are reportedly expected to become our major investors in Tiktok, with a total of 45% ownership.
MGX did not respond immediately to Reuters’ comments CNBC Report.
Republican House members said they wanted to see more details of the deal to make sure it represents a clean break with China.
“As the details are finalized, we must ensure that this deal protects U.S. users from the influence and surveillance of CCP coherent groups,” said U.S. representatives Brett Guthrie, Gus Bilirakis and Richard Hudson.
A deal on Tiktok’s U.S. business included an appointment to one of the seven board members of the new entity, with the Americans holding six other seats, senior White House officials said Saturday.
In Tiktok, you will last less than 20% to comply with the requirements set out in the 2024 law, which requires that you order it to close in January 2025 if you do not sell their assets.
