Trump Orders Sale of TikTok's U.S. Operations for $14 Billion
Former U.S. President Donald Trump signed an executive order directing the sale of TikTok's American operations to a group of U.S. and global investors. The deal values the new entity at approximately $14 billion, aiming to secure the app's future in the U.S. while addressing national security concerns.
National Security Concerns and the 2024 Law
The executive order, issued on Thursday, mandates that prospective buyers meet strict national security conditions as outlined in a 2024 law. This law would have banned the app if its Chinese owners, ByteDance, failed to divest. The administration extended the enforcement deadline to January 20 to allow time for negotiations, investor commitments, and final approvals.
According to Vice President James Vance, the deal aims to safeguard user data. “We actually think this is a good deal for investors, but they will make a determination about what they want to invest and what they think is the proper value,” Vance stated at a White House briefing.
Key Details and the Recommendation Algorithm
Several key details of the arrangement remain unresolved, notably the fate of TikTok’s prized recommendation algorithm. Trump's order stipulates that the algorithm be retrained, monitored by U.S. security partners, and operated solely by the new American-led venture.
Trump indicated that he had spoken with Chinese President Xi Jinping, who signaled approval of the plan. “We had a good talk, I told him what we were doing, and he said go ahead with it,” Trump noted, emphasizing the agreement's goal was to preserve the app while protecting American users’ privacy.
Investors and U.S. Operation
Trump confirmed that prominent investors, including Dell Technologies founder Michael Dell, media mogul Rupert Murdoch, and “four or five absolutely world-class investors,” would participate in the venture. The administration clarified that the app will be "American-operated all the way."
With 170 million U.S. users, TikTok has become a major political and cultural force. Trump, who has 15 million followers on his personal account, previously credited the platform with helping him win reelection. The White House also launched its own official TikTok channel.
Remaining Uncertainties and Reactions
While Trump's order signifies progress, numerous details still need to be finalized, including the structure of the U.S. entity and its operational role. Chinese media outlets suggest that ByteDance may continue to play a major role in the new U.S. operation. Republican House politicians have expressed the need for more details to ensure a clean break with China.
| Aspect | Detail |
|---|---|
| Valuation of US Operations | Approximately $14 Billion |
| Key Investors | Michael Dell, Rupert Murdoch, & Others |
| US Users | 170 Million |
| Algorithm Control | To be retrained and monitored by US security partners |
