Trump Signs Order Allowing $14B USD TikTok U.S. Sale Deal

On September 25, 2025, President Donald Trump signed an executive order approving a framework to transfer control of TikTok’s U.S. operations to a U.S.-controlled joint venture, meeting the requirements of the 2024 law that had threatened to ban the app. The White House set the new U.S. company’s valuation at $14 billion USD.

The move clears the way for a forced divestiture aimed at protecting Americans’ data while keeping the app available to millions of U.S. users. However, questions remain over who controls TikTok’s recommendation algorithm and whether the deal fully separates the platform from ByteDance.

U.S Retains Data Control With Trump Approved Deal 

The presidential order formally classifies the TikTok U.S. sale as a “qualified divestiture” under the Protecting Americans from Foreign Adversary Controlled Applications Act. This suspends the app’s ban for 120 days to allow implementation. The order requires that sensitive U.S. user data be stored and controlled domestically, that recommendation models be retrained using U.S. data, and that “trusted security partners” monitor updates and data flows.

According to official report, the new U.S. joint venture would be majority-owned and controlled by American companies, while ByteDance would hold less than 20% and a single board seat out of seven. This structure is designed to meet the law’s requirements and remove the app from the ban.

Investor Mix and Valuation Questions TikTok U.S. Deal

U.S. reports identify Oracle and private equity firm Silver Lake as part of an investor group set to take about a 50% stake in TikTok U.S., with other investors including Michael Dell and Rupert Murdoch, though their involvement has not been confirmed by any official listings yet. Abu Dhabi’s MGX, chaired by Sheikh Tahnoon, is also expected to take a significant stake, reflecting the deal’s international financing mix. 

In April 2025, Wedbush Securities valued TikTok’s U.S. operations without its recommendation algorithm at $30B to $40B USD, well above the $14B USD figure set by the Trump administration. Since ByteDance will keep a 20% stake and continue licensing the algorithm, the lower valuation has fueled debate over what was included in the pricing and who stands to benefit in the long run.

Algorithm, Oversight, and Chinese Influence

The order requires TikTok’s recommendation algorithm to be retrained under U.S. supervision, with oversight from designated security partners. The specifics have not been released, and some reports indicate ByteDance could retain revenue or limited ties. Trump said he discussed the deal with Xi Jinping and that Xi gave his “go ahead,” while China’s foreign ministry later called for market-based talks.

The lack of details has prompted calls for clarity, seeking assurances on data security, along with employees and creators expressing uncertainty about the platform’s future operations. Many reports have also raised concerns about how the algorithm will be separated, whether ByteDance will retain any licensing role, and if the $14 billion valuation reflects the full standalone value of the business.

What to Watch Out for Next

The administration has 120 days to finalize implementation agreements, with the Attorney General representing the U.S. government. Central issues include how TikTok’s algorithm will be separated, retrained, and controlled, and how investor ownership, board composition, and any ByteDance revenue-sharing will be structured. The $14 billion valuation and investor mix will also be closely examined.

The order preserves TikTok’s operations in the U.S. while reshaping ownership and control for national-security purposes, shifting the focus from a potential ban to the technical and commercial details of algorithms, governance, and value.