The TikTok emblem displayed outside the company’s offices in Culver City, California, on March 12, 2024.
Mario Tama/Getty Images North America
On Thursday, President Trump officially endorsed a transaction allowing a group of primarily American investors to acquire TikTok, the popular short-form video platform. He signed an executive order authorizing the spin-off, emphasizing that the arrangement includes “robust safeguards” to ensure security and user safety.
Although TikTok is a product of Beijing-based ByteDance, legislation enacted last year mandates that the parent company divest its U.S. operations or face a nationwide ban due to national security concerns.
The trump-transgender-nonbinary-passport-enforcement/” title=”… Pushes for Stricter Enforcement of Transgender and Non-Binary Passport Policies | Donald … News”>executive order issued by Trump confirms that the proposed transaction satisfies the “qualified divestiture” criteria set by Congress, demonstrating that TikTok will no longer be under foreign adversary control.
According to the agreement, ByteDance will retain less than a 20% stake in the newly formed company, which will be governed by a board of directors committed to protecting American users’ privacy.
“I have concluded that this divestiture plan enables millions of Americans who use TikTok daily to continue enjoying the platform while safeguarding national security,” the order stated.
During a White House ceremony on Thursday afternoon, Trump revealed that the new ownership group would likely include “four or five” investors. He specifically mentioned Oracle’s Larry Ellison, media mogul Rupert Murdoch, and Michael Dell, founder of Dell Technologies. Additionally, a senior White House official confirmed that the investment firm Silver Lake would participate in the venture.
Vice President J.D. Vance, who has been leading the administration’s efforts to finalize the deal, informed reporters that the company’s valuation is expected to be around $14 billion, which he described as favorable for the investors involved.
When questioned about how American user data would be protected under the new structure, Vance provided limited specifics but assured, “This agreement guarantees that the American entity and its investors will have control over the algorithm. We must prevent any foreign government from exploiting this platform as a propaganda instrument.”
TikTok boasts approximately 170 million users in the United States, roughly half the population. Its widespread use combined with Chinese ownership has sparked fears that the app could be exploited by the Chinese government to gather data on Americans or influence users through propaganda and misinformation.
The Protecting Americans from Foreign Adversary Controlled Applications Act, enacted last April, states that apps operated by foreign adversaries present “unacceptable national security risks,” and mandates ownership changes as the sole remedy to mitigate these threats.
The legislation compelled ByteDance to divest TikTok’s U.S. operations or face a ban. The Supreme Court upheld this law despite TikTok’s challenge on free speech grounds. However, on Inauguration Day, Trump issued the first of several executive orders delaying the ban’s enforcement while his administration negotiated a transfer of control to American investors.
Thursday’s approval marks a significant shift for Trump, who initially sought to ban TikTok during his first term. He admitted he was “somewhat biased” in favor of the app this time, crediting it with helping him gain support among younger voters in 2024, which contributed to his political comeback.
The TikTok saga is intertwined with the larger geopolitical rivalry between the U.S. and China, encompassing ongoing discussions about trade and tariffs.
Vance acknowledged “some pushback from the Chinese side” during negotiations, but Trump reported having “a very productive conversation” with Chinese President Xi Jinping last week, who “gave us the green light” to proceed.
Looking ahead, Trump and Xi are scheduled to meet in roughly five weeks at an Asia-Pacific summit in South Korea. Trump has also expressed intentions to visit China next year, with Xi planning a reciprocal trip to the United States “when the timing is right.”
