Trump Signs Executive Order to Divest TikTok’s U.S. Operations, Valued at $14 Billion

Washington D.C.: President Donald Trump on Thursday signed an executive order approving the sale of TikTok’s U.S. operations to a group of American and global investors, aiming to address national security concerns outlined in a 2024 law. The new U.S. entity, valued at approximately $14 billion, will involve prominent investors including Michael Dell, Rupert Murdoch, and others, while TikTok’s Chinese parent company ByteDance will retain a minority stake. Vice President JD Vance confirmed that the deal would allow TikTok to continue operating in the U.S., while ensuring American data privacy protections.

The executive order delays enforcement of the law banning the app until January 20, giving time for the U.S. entity to be structured, investors to be finalized, and Chinese government approval to be secured. Trump emphasized that the TikTok algorithm will be retrained and monitored under U.S. control, although legal experts and analysts have raised questions about the extent of ByteDance’s continued involvement in the platform’s core technology. Chinese media reports suggest ByteDance will still play a role in e-commerce, branding, and international operations, though these claims have not been officially confirmed.

Under the proposed structure, Oracle, Silver Lake, and other investors are set to hold a majority stake of roughly 50%, while ByteDance investors retain about 30%, with a board consisting of six American members and one ByteDance appointee. Republican lawmakers have called for greater transparency to ensure a complete separation from Chinese influence. The deal marks a significant step in reshaping TikTok’s U.S. presence while balancing national security, investor interests, and ongoing negotiations with China.

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