President Donald Trump signed an executive order on Thursday declaring his plan to sell Chinese-owned TikTok's US operations to US and global investors will address national security requirements under a 2024 law.
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ksl.comThe new company will be valued at around $14 billion, Vice President JD Vance said, a price tag far below some analyst estimates.
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ksl.comThis move delays enforcement of the law banning TikTok until January 20, as efforts continue to extract US assets, secure investors, and gain Chinese government approval.
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ksl.comThe executive order outlines a restructuring of TikTok's US operations, with the algorithm—its most critical asset—subject to retraining and monitoring by US security partners.
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ksl.comHowever, experts like Alan Rozenshtein of the University of Minnesota Law School raised concerns, noting the order leaves unanswered questions about ByteDance's continued influence over the algorithm.
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ksl.com"The problem is that the president has certified the deal, but he has not provided a lot of information on the algorithm," Rozenshtein stated.
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deccanchronicle.comThe deal involves a group of three investors, including Oracle and private-equity firm Silver Lake, taking roughly 50% ownership of TikTok US, while ByteDance shareholders hold 30%.
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deccanchronicle.comMichael Dell, Rupert Murdoch, and "probably four or five absolutely world-class investors" are also part of the agreement.
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ksl.comDespite this, ByteDance retains less than 20% in TikTok US to comply with the 2024 law's requirements.
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deccanchronicle.comChinese media reports suggest ByteDance will maintain operational roles, including setting up a new US company for e-commerce and international operations.
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asia.nikkei.comThe $14 billion valuation starkly contrasts with analyst estimates of $30-40 billion for TikTok without its algorithm.
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ksl.comTikTok's Chinese parent, ByteDance, values itself at over $330 billion, though TikTok contributes only a small fraction of its revenue.
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ksl.comTrump claimed Chinese President Xi Jinping approved the plans, stating they had a "good talk" and Xi told him to "go ahead with it." However, the Chinese embassy did not immediately comment on the agreement.
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ksl.comca.finance.yahoo.comThe sale has drawn scrutiny from US lawmakers, who emphasized the need for transparency to ensure a "clean break" with China.Republican representatives warned that the deal must protect American users from "CCP-aligned groups." The White House highlighted that the new joint venture will oversee digital security and safeguard content, but critics argue the structure prioritizes political optics over genuine security protections.
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moderndiplomacy.eudeccanchronicle.comTrump framed the deal as a victory for American interests, noting TikTok's 170 million US users and his personal 15 million followers on the platform.
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ksl.comThe White House also launched an official TikTok account, underscoring its strategic importance.
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ksl.comDespite these claims, the agreement's details remain incomplete, with questions about ByteDance's algorithm control and the final valuation persisting.
