President Donald Trump on Thursday signed an executive order affirming that his plan to transfer TikTok\u2019s US operations from Chinese parent ByteDance to American and international investors complies with the national security requirements set out in a 2024 law. Vice President JD Vance said the new US-based company would be valued at around $14 billion well below many analysts\u2019 projections for the popular short-video platform. Trump also postponed enforcement of the law banning TikTok unless its Chinese owners divest the US business. The new deadline of January 20 provides additional time to finalize the transaction, attract investors, and secure Beijing\u2019s approval. The executive order marks progress toward separating TikTok\u2019s US operations from ByteDance, but uncertainties remain, particularly about who will control TikTok\u2019s influential recommendation algorithm. \u201cThere was some resistance from the Chinese side,\u201d Vice President Vance acknowledged at an Oval Office briefing. \u201cBut our priority was to keep TikTok operational while ensuring Americans\u2019 data privacy as required by law.\u201d Under the order, the algorithm will be retrained under the supervision of security partners from the new US entity, with operational control handed to a joint venture. Trump said he discussed the plan directly with Chinese President Xi Jinping. \u201cWe had a good conversation, and he told me to go ahead with it,\u201d Trump said. Neither TikTok nor the Chinese embassy in Washington immediately commented. TikTok has about 170 million US users. Trump, who has 15 million followers on his personal account, has credited the platform with helping him win reelection. The White House recently launched its own official TikTok account as well. \u201cThis is going to be American-operated all the way,\u201d Trump emphasized, adding that prominent figures like Dell Technologies founder Michael Dell, Fox Corp. chairman emeritus Rupert Murdoch, and several \u201cworld-class investors\u201d are expected to take part in the deal. The White House did not explain how the $14 billion valuation was determined. By contrast, ByteDance recently set its own value at more than $330 billion in an employee share buyback plan. TikTok contributes only a small fraction of that total revenue. Analysts, however, note a wide valuation gap. Wedbush Securities\u2019 Dan Ives estimated TikTok could be worth $30 to $40 billion without its algorithm as of April 2025. Alan Rozenshtein, professor at the University of Minnesota Law School, said the order still leaves major uncertainties unresolved. \u201cThe problem is that the president has certified the deal, but has not provided clarity on the algorithm,\u201d he noted. Oracle, others to own TikTok in US A group of three investors, including Oracle and private-equity firm Silver Lake, will take a roughly 50% stake in TikTok US, two sources familiar with the deal said on Thursday. A group of existing shareholders in ByteDance will hold a roughly 30% stake, one of the sources said. Among ByteDance\u2019s current investors are Susquehanna International Group, General Atlantic and KKR. Given intense investor interest in TikTok, the 50% stake may still shift, the source noted. Oracle and Silver Lake did not immediately respond to requests for comment. CNBC reported earlier, citing sources, that Abu Dhabi-based MGX, Oracle and Silver Lake are poised to be the main investors in TikTok US with a combined 45% ownership. MGX did not immediately respond to a Reuters request for comment on the CNBC report. Republican House of Representatives lawmakers said they want to see more details of the deal to ensure it represents a clean break with China. “As the details are finalised, we must ensure this deal protects American users from the influence and surveillance of CCP-aligned groups,\u201d said US Representatives Brett Guthrie, Gus Bilirakis and Richard Hudson, all Republicans. The agreement on TikTok\u2019s US operations includes the appointment by ByteDance of one of seven board members for the new entity, with Americans holding the other six seats, a senior White House official said on Saturday. ByteDance would hold less than 20% in TikTok US to comply with requirements set out in the 2024 law that ordered it shut down by January 2025 if its US assets were not sold by ByteDance.<\/p>\n","protected":false},"excerpt":{"rendered":"
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