ByteDance to Build a Component of TikTok's Reorganization
President Donald Trump has advanced in altering TikTok's future in the United States, signing an executive order that paves the way for a $14 billion sale of the app’s U.S. operations to domestic and international investors.
The action aims to adhere to a 2024 law that mandates Chinese proprietors to sell off the widely-used short video platform due to national security concerns.
Vice President JD Vance, addressing the White House, affirmed the $14 billion valuation, which is notably less than estimates from several analysts. He stated the goal was to maintain TikTok's accessibility for its 170 million U.S. users while guaranteeing "data privacy for Americans as mandated by law," according to reports.
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The order also delays the enforcement of the divest-or-ban deadline to January 20, allowing negotiators time to separate TikTok’s U.S. assets, obtain investors, and manage Chinese government approvals.
Trump mentioned that he had a direct conversation with President Xi Jinping, who expressed his backing for the initiative.
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A highly sensitive matter—the app’s robust recommendation algorithm is said to be retrained and managed by security partners of the new U.S. firm, with full operational control remaining in American possession.
“This will be entirely American-run,” Trump stated, mentioning that notable investors like Dell Technologies' founder Michael Dell and media tycoon Rupert Murdoch would join the new enterprise with “four or five truly exceptional” partners.
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ByteDance, the parent company of TikTok based in Beijing, is also said to be planning to create a new U.S. entity as a part of its restructuring efforts.