Donald Trump has signed an executive order approving the proposed sale of TikTok’s US business, valuing the platform at $14 billion and extending a looming enforcement deadline under a law requiring divestment.
The order, issued on 25 September, confirms that the White House considers the agreement to meet national security requirements set by the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA). Trump also delayed enforcement of the law until 20 January, giving time for the deal to close.
Vice President J. D. Vance told reporters the new US entity would carry a $14 billion valuation. That figure is far below many analyst estimates, some of which had placed TikTok’s US operations between $30 billion and $40 billion if the app’s core algorithm were fully included.
Reuters reported that ByteDance, TikTok’s Beijing-based parent company, would retain less than 20 percent of equity and only one of seven board seats in the new entity. A consortium including Oracle, Silver Lake, and Abu Dhabi’s MGX is expected to be among the lead investors, with individuals such as Michael Dell and Rupert Murdoch also named.
The executive order requires TikTok’s recommendation algorithm to be “retrained and monitored” under US security oversight. Operational control of the platform’s American service is to shift to the newly created venture. Trump said the deal represented “a very important victory for data security and for America’s children,” according to Politico.
The move follows a Supreme Court ruling earlier this year in TikTok, Inc. v. Garland, which upheld the PAFACA law. Under the statute, ByteDance was required to divest TikTok’s US operations or face a nationwide ban. Trump’s order extends the compliance deadline for what he described as “the final time.”
The Financial Times reported that Beijing had signalled informal approval for the plan after a phone call between Trump and Chinese President Xi Jinping, although formal confirmation from Chinese regulators has not been issued. Observers note that final clearance from China remains critical given export controls covering algorithms and data processing technologies.
Critics have warned that questions remain over the robustness of algorithm oversight and potential residual influence from ByteDance. “This agreement doesn’t resolve every risk,” Senator Mark Warner, chair of the Senate intelligence committee, told the FT, adding that Congress would continue to review the details.
The White House said a 120-day window has been set to complete all aspects of the divestment. If the deal does not close in time, TikTok would again face the risk of prohibition in the US market.
The forced restructuring underscores Washington’s growing willingness to intervene directly in foreign-owned consumer technology platforms, raising wider implications for data-driven businesses operating across US-China boundaries.
