President Donald Trump on Thursday signed an executive order declaring that the proposed divestiture of TikTok’s U.S. operations meets the national security conditions imposed by a 2024 law. The order signals major progress in a high-stakes effort to decouple the app from its Chinese parent company, ByteDance, while allowing it to continue operating in America. Vice President J.D. Vance announced that the U.S. entity will be valued at approximately $14 billion, far below many previous analyst estimates of the company’s worth.
By issuing the order, Trump delays enforcement of the statutory deadline to January 20, thereby buying time for negotiations and structuring the deal. Under the law, TikTok faced a shutdown in the U.S. unless ByteDance sold its U.S. assets by earlier deadlines. The order is intended as a formal certification that the plan now under negotiation suffices to satisfy congressional security mandates. According to the administration, the new U.S.-based joint venture will hold operational control over TikTok’s most prized asset: its recommendation algorithm. The executive order stipulates that the algorithm must be “retrained and monitored” by U.S. security partners, and that the joint venture—not ByteDance—will control how it is used.
Though the White House announced the valuation and high-level terms, many pivotal details remain opaque. The exact shareholding structure, investor roles, compliance with China’s regulatory regime, and algorithmic oversight mechanisms have yet to be fully disclosed. At the signing, Trump said he had spoken with China’s President Xi Jinping, who gave “go ahead” to the plan, though China has not publicly confirmed approval.
Ownership Structure, Stakes and Investors
The new arrangement will likely see a consortium of investors control a substantial stake in TikTok’s U.S. operations. Reports suggest that Oracle and private equity firm Silver Lake are poised to hold a combined 45–50 percent share, joined by others such as Abu Dhabi’s MGX, tech luminaries like Michael Dell, and media mogul Rupert Murdoch. ByteDance itself will retain a minority stake—less than 20 percent—and will be permitted to nominate one of seven board members, but will be excluded from oversight of security, algorithm, or data governance.
Under this structure, six board seats will be allocated to U.S. actors, ensuring that American interests dominate strategic decisions. Oracle is expected to play a central role overseeing algorithm licensing and data privacy, essentially functioning as a gatekeeper of algorithmic control and safeguarding U.S. user data. The executive order insists that all algorithmic decisions for the U.S. version will be separate from ByteDance’s global systems.
Even as the investor roster is beginning to take shape, the final share percentages could shift due to ongoing investor interest and negotiation. The incoming arrangement must mesh with both U.S. and Chinese regulatory frameworks. Chinese media reporting suggests ByteDance will operate a separate U.S.-based entity handling international connectivity, ecommerce, and brand operations, while the joint venture handles content, software, and U.S. digital security tasks. Some reports even indicate that ByteDance’s new U.S. affiliate may receive revenue from the restructured TikTok entity, complicating the narrative of a clean separation.
Algorithm, Security, and Legal Uncertainties
Central to the security debate is TikTok’s recommendation engine, which guides the content users see and is highly proprietary. Under the order, the algorithm must be re-trained using U.S. data and monitored by security partners within the new venture. The joint venture is intended to have operational control—and the White House says it will be “American-operated all the way.” Still, critics note the ambiguity: the order does not specify how much control ByteDance may retain over algorithmic components, what audit rights will exist, or how divergence from global codebases will be managed.
Legal scholars also point out that the executive order, while certifying the plan, does not fully resolve key questions left unanswered by Congress. For example, can ByteDance maintain any leverage over algorithm updates or enforcement logic? And how will U.S. courts treat future disputes over algorithm access or control? Critics warn that the order lacks sufficient transparency in laying out those safeguards.
At the same time, the administration has extended the timeline further, providing 120 days for finalization of the deal under the order’s terms. This extension, combined with prior deferrals, delays enforcement of the ban and allows TikTok to continue operations uninterrupted during negotiations. Meanwhile, enforcement under the existing law remains paused until January 20, insulating the company from immediate shutdown threats.
Political Stakes, Market Reactions, and User Impacts
The timing and structure of the deal carry significant political and market implications. Trump has frequently credited TikTok with helping his reelection, as the platform boasts tens of millions of U.S. users—reportedly around 170 million. He told supporters that the new version would be “American-operated,” emphasizing that diverse viewpoints would still be treated fairly. He also named high-profile figures such as Michael Dell and Rupert Murdoch as participants in the deal, and hinted at the involvement of several “world-class investors.”
Yet market watchers note that the $14 billion valuation is modest compared to prior estimates. Some analysts believed TikTok’s U.S. operations alone could command valuations of $30 billion or more without the algorithm. The comparatively low figure may reflect concessions made in exchange for regulatory approval, or discounts incorporated to manage risk. The disparity has drawn scrutiny from investors and rivals alike.
In Washington, congressional Republicans have demanded more details to ensure the divestment accomplishes a true clean break from Chinese control. Lawmakers emphasized that the deal must fully sever algorithmic and data ties, not merely rebrand governance superficially. The White House, for its part, maintains that the executive order, combined with forthcoming agreements, protects American users from influence or surveillance by foreign actors.
For TikTok users and employees, the transition may bring visible or subtle changes. While the app’s interface, content feed, and global connectivity are likely to persist, the algorithm’s retraining and code separation could alter content preferences. Internally, employees have expressed uncertainty over their job roles, reporting structural ambiguity over how the new entity will align with ByteDance operations.
China, too, watches the deal closely. While Trump claimed that Xi Jinping tacitly approved the plan, official Chinese confirmation has not materialized. Some Chinese sources suggest ByteDance will retain meaningful operational influence through related businesses that feed into the U.S. entity. Others interpret the arrangement as a strategic concession by Beijing amid broader US-China negotiations.
As the clock now runs on the 120-day window for deal finalization, the Trump administration must balance complex engineering: complying with U.S. law, satisfying Chinese regulators, managing investor expectations, and preserving TikTok’s user experience. The $14 billion valuation is a public anchor for what may become a far more intricate structure behind the scenes.
(Source:www.reuters.com)
By issuing the order, Trump delays enforcement of the statutory deadline to January 20, thereby buying time for negotiations and structuring the deal. Under the law, TikTok faced a shutdown in the U.S. unless ByteDance sold its U.S. assets by earlier deadlines. The order is intended as a formal certification that the plan now under negotiation suffices to satisfy congressional security mandates. According to the administration, the new U.S.-based joint venture will hold operational control over TikTok’s most prized asset: its recommendation algorithm. The executive order stipulates that the algorithm must be “retrained and monitored” by U.S. security partners, and that the joint venture—not ByteDance—will control how it is used.
Though the White House announced the valuation and high-level terms, many pivotal details remain opaque. The exact shareholding structure, investor roles, compliance with China’s regulatory regime, and algorithmic oversight mechanisms have yet to be fully disclosed. At the signing, Trump said he had spoken with China’s President Xi Jinping, who gave “go ahead” to the plan, though China has not publicly confirmed approval.
Ownership Structure, Stakes and Investors
The new arrangement will likely see a consortium of investors control a substantial stake in TikTok’s U.S. operations. Reports suggest that Oracle and private equity firm Silver Lake are poised to hold a combined 45–50 percent share, joined by others such as Abu Dhabi’s MGX, tech luminaries like Michael Dell, and media mogul Rupert Murdoch. ByteDance itself will retain a minority stake—less than 20 percent—and will be permitted to nominate one of seven board members, but will be excluded from oversight of security, algorithm, or data governance.
Under this structure, six board seats will be allocated to U.S. actors, ensuring that American interests dominate strategic decisions. Oracle is expected to play a central role overseeing algorithm licensing and data privacy, essentially functioning as a gatekeeper of algorithmic control and safeguarding U.S. user data. The executive order insists that all algorithmic decisions for the U.S. version will be separate from ByteDance’s global systems.
Even as the investor roster is beginning to take shape, the final share percentages could shift due to ongoing investor interest and negotiation. The incoming arrangement must mesh with both U.S. and Chinese regulatory frameworks. Chinese media reporting suggests ByteDance will operate a separate U.S.-based entity handling international connectivity, ecommerce, and brand operations, while the joint venture handles content, software, and U.S. digital security tasks. Some reports even indicate that ByteDance’s new U.S. affiliate may receive revenue from the restructured TikTok entity, complicating the narrative of a clean separation.
Algorithm, Security, and Legal Uncertainties
Central to the security debate is TikTok’s recommendation engine, which guides the content users see and is highly proprietary. Under the order, the algorithm must be re-trained using U.S. data and monitored by security partners within the new venture. The joint venture is intended to have operational control—and the White House says it will be “American-operated all the way.” Still, critics note the ambiguity: the order does not specify how much control ByteDance may retain over algorithmic components, what audit rights will exist, or how divergence from global codebases will be managed.
Legal scholars also point out that the executive order, while certifying the plan, does not fully resolve key questions left unanswered by Congress. For example, can ByteDance maintain any leverage over algorithm updates or enforcement logic? And how will U.S. courts treat future disputes over algorithm access or control? Critics warn that the order lacks sufficient transparency in laying out those safeguards.
At the same time, the administration has extended the timeline further, providing 120 days for finalization of the deal under the order’s terms. This extension, combined with prior deferrals, delays enforcement of the ban and allows TikTok to continue operations uninterrupted during negotiations. Meanwhile, enforcement under the existing law remains paused until January 20, insulating the company from immediate shutdown threats.
Political Stakes, Market Reactions, and User Impacts
The timing and structure of the deal carry significant political and market implications. Trump has frequently credited TikTok with helping his reelection, as the platform boasts tens of millions of U.S. users—reportedly around 170 million. He told supporters that the new version would be “American-operated,” emphasizing that diverse viewpoints would still be treated fairly. He also named high-profile figures such as Michael Dell and Rupert Murdoch as participants in the deal, and hinted at the involvement of several “world-class investors.”
Yet market watchers note that the $14 billion valuation is modest compared to prior estimates. Some analysts believed TikTok’s U.S. operations alone could command valuations of $30 billion or more without the algorithm. The comparatively low figure may reflect concessions made in exchange for regulatory approval, or discounts incorporated to manage risk. The disparity has drawn scrutiny from investors and rivals alike.
In Washington, congressional Republicans have demanded more details to ensure the divestment accomplishes a true clean break from Chinese control. Lawmakers emphasized that the deal must fully sever algorithmic and data ties, not merely rebrand governance superficially. The White House, for its part, maintains that the executive order, combined with forthcoming agreements, protects American users from influence or surveillance by foreign actors.
For TikTok users and employees, the transition may bring visible or subtle changes. While the app’s interface, content feed, and global connectivity are likely to persist, the algorithm’s retraining and code separation could alter content preferences. Internally, employees have expressed uncertainty over their job roles, reporting structural ambiguity over how the new entity will align with ByteDance operations.
China, too, watches the deal closely. While Trump claimed that Xi Jinping tacitly approved the plan, official Chinese confirmation has not materialized. Some Chinese sources suggest ByteDance will retain meaningful operational influence through related businesses that feed into the U.S. entity. Others interpret the arrangement as a strategic concession by Beijing amid broader US-China negotiations.
As the clock now runs on the 120-day window for deal finalization, the Trump administration must balance complex engineering: complying with U.S. law, satisfying Chinese regulators, managing investor expectations, and preserving TikTok’s user experience. The $14 billion valuation is a public anchor for what may become a far more intricate structure behind the scenes.
(Source:www.reuters.com)
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