U.S. President Donald Trump has signed an executive order approving the sale of TikTok’s U.S. operations to a group of American and global investors, in a deal valued at around $14 billion. The move aims to satisfy national security requirements set out in a 2024 law mandating that Chinese-owned TikTok divest its U.S. assets or face a nationwide ban. Enforcement of the law has been delayed until January 20, 2026, to allow the transaction to close.
U.S.-Led Investment Group
According to the White House, the new U.S.-based TikTok entity will be majority-owned by American investors. A consortium including Oracle and private equity firm Silver Lake is expected to take roughly 50 percent ownership, while existing ByteDance shareholders such as Susquehanna International Group, General Atlantic, and KKR may retain a combined stake of about 30 percent. Abu Dhabi–based MGX is also reported to be a key investor. ByteDance itself will hold less than 20 percent, ensuring compliance with the U.S. divestment mandate, Reuters news report said.
Prominent business leaders including Michael Dell of Dell Technologies and Rupert Murdoch of Fox Corp and News Corp are reportedly among the investors involved. The ownership percentages could shift as negotiations are finalized.
Algorithm Under U.S. Control
A key component of the deal is TikTok’s proprietary recommendation algorithm. Trump’s executive order specifies that the algorithm will be retrained and monitored by U.S. security partners, with full operational control transferred to the new joint venture. Legal experts note, however, that questions remain about how the algorithm’s technology will be separated from ByteDance’s global platform.
Vice President JD Vance emphasized that the agreement protects American users’ data privacy while keeping TikTok operational for its 170 million U.S. users. Trump, who has credited TikTok with helping his 2024 reelection campaign, reaffirmed that “this is going to be American-operated all the way.”
Chinese Approval and Ongoing Oversight
Trump said he has spoken with Chinese President Xi Jinping, who indicated support for the plan. The Chinese government and ByteDance have not publicly commented, and the deal still requires regulatory approvals in both the U.S. and China.
Republican lawmakers welcomed progress but called for strict oversight to ensure a “clean break” from Chinese influence. The new U.S. entity’s board will include seven members, six of whom will be Americans, with ByteDance appointing one.
Market Impact and Valuation
Analysts previously valued TikTok’s U.S. operations between $30 billion and $40 billion without its algorithm, making the $14 billion valuation notably conservative. ByteDance’s overall valuation exceeds $330 billion, according to its latest employee share buyback plan.
Baburajan Kizhakedath