U.S. President Donald Trump has issued an executive order confirming the progress in selling TikTok’s U.S. operations to American and international investors, aligning with a 2024 law mandating the sale of the short video app by its Chinese owners to avoid a ban. The new U.S. entity is expected to be valued at approximately $14 billion US, according to Vice-President JD Vance.
The enforcement of the law has been postponed by Trump until December 16 as negotiations continue to separate TikTok’s U.S. assets from the global platform, engage American and other investors, and secure approval from the Chinese government. Vance emphasized the importance of maintaining TikTok’s operations while safeguarding American data privacy in accordance with legal requirements.
Following a conversation with Chinese President Xi Jinping, Trump received approval to proceed with the deal, despite initial resistance from the Chinese side. The Chinese embassy in Washington and TikTok have yet to provide official comments on Trump’s actions.
Trump, recognizing the platform’s impact on his previous election campaign, highlighted TikTok’s significance, boasting 170 million U.S. users and his substantial following of 15 million on the app. Additionally, the White House recently launched an official TikTok account.
The President reiterated that the U.S.-based operations of TikTok would remain under American control. When asked about the app’s algorithm, Trump expressed a desire for increased promotion of MAGA-related content but assured fairness in treatment for all users and policies.
Notable figures such as Dell Technologies founder and CEO Michael Dell, media tycoon Rupert Murdoch, and several prominent investors are anticipated to participate in the deal, though the White House did not disclose the basis for the $14 billion US valuation. This valuation contrasts with ByteDance, TikTok’s Chinese parent company, which values itself at $330 billion US.
Republican House members have urged for transparency in the deal’s specifics to guarantee a clean break from Chinese influence and surveillance, emphasizing the need to protect American users. U.S. representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson emphasized the importance of safeguarding American interests in the transaction.