TikTok U.S. Sale Proceeds with Executive Order, Valued at USD 14 Billion
- Sep 26, 2025
- 3 min read
President Donald Trump signed an executive order Thursday, initiating a plan to sell TikTok's U.S. operations to American and global investors. The order addresses national security requirements outlined in a 2024 law, setting the stage for a new U.S. company.
Vice President JD Vance stated the new entity would be valued at approximately USD 14 billion, a figure below some analyst estimates for the popular short video application. Trump on Thursday delayed until January 20 enforcement of the law that bans the app unless its Chinese owners sell it, amid efforts to finalise the sale.
The executive order marks progress, but several details require development, including how the U.S. entity will utilise TikTok's key recommendation algorithm. Vance noted that while there was some resistance from the Chinese side, the primary goal was to keep TikTok operating while protecting Americans' data privacy.
Trump's order specifies that the algorithm will be retrained and monitored by the U.S. company's security partners. Operation of the algorithm will be under the control of the new joint venture, ensuring data security.
President Trump indicated that Chinese President Xi Jinping had approved the plans, stating, "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 credited TikTok, which has 170 million U.S. users, with helping him win re-election last year. He maintains 15 million followers on his personal TikTok account, and the White House launched its official account last month.
"This is going to be American-operated all the way," Trump said, confirming the shift in control. He mentioned potential investors including Michael Dell, the founder, chairman, and CEO of Dell Technologies; Rupert Murdoch, the chairman emeritus of Fox News owner Fox Corp and newspaper publisher News Corp; and 'probably four or five absolutely world-class investors'.
The White House did not disclose the methodology behind the USD 14 billion valuation. TikTok's Chinese parent company, ByteDance, currently values itself at over USD 330 billion, according to its new employee share buyback plan.
Wedbush Securities analyst Dan Ives estimated TikTok's value at USD 30 billion to USD 40 billion without the algorithm, as of April 2025. Alan Rozenshtein, a professor at the University of Minnesota Law School, highlighted unanswered questions, particularly regarding ByteDance's continued control of the algorithm.
"The problem is that the president has certified the deal, but he has not provided a lot of information on the algorithm," Rozenshtein added.
A group of three investors, including Oracle and private-equity firm Silver Lake, are expected to acquire a roughly 50% stake in TikTok U.S. Additionally, existing ByteDance shareholders, such as Susquehanna International Group, General Atlantic, and KKR, will hold an approximate 30% stake.
CNBC reported earlier, citing sources, that Abu Dhabi-based MGX, Oracle, and Silver Lake are poised to be major investors, with a combined 45% ownership. The 50% stake may still change due to strong investor interest.
Republican House of Representatives lawmakers requested more details to ensure a complete separation from China. U.S. Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson, all Republicans, said, "As the details are finalised, we must ensure this deal protects American users from the influence and surveillance of CCP-aligned groups."
The agreement allows ByteDance to appoint one of seven board members for the new entity, with Americans holding the remaining six seats, a senior White House official confirmed Saturday. ByteDance would hold less than 20% in TikTok U.S. to meet the 2024 law's requirements, which mandated a shutdown by Jan. 2025 if U.S. assets were not sold.
President Donald Trump signed an executive order to sell TikTok's U.S. operations, valued at USD 14 billion.
The sale aims to address national security requirements and, with details still to be fleshed out, establish U.S. control over TikTok's data and operations.
The recommendation algorithm will be retrained, monitored by U.S. security partners, and controlled by the new joint venture.
Source: REUTERS
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