Trump Signs Order Declaring TikTok Sale Ready: What a $14 Billion Valuation Means for Investors and Entrepreneurs
WASHINGTON: President Donald Trump signed an executive order on Thursday endorsing his plan to transfer Chinese-owned TikTok’s U.S. operations to American and global investors, aiming to meet national security requirements set forth in a 2024 law.
Vice President JD Vance announced that the newly formed U.S. company will be valued at approximately $14 billion, a figure notably lower than some analysts had projected.
Trump also postponed enforcement of the legislation that prohibits TikTok in the U.S. unless its Chinese owners divest, extending the deadline to January 20. This delay allows time to separate TikTok’s U.S. assets from the global platform, secure American and other international investors, and obtain approval from the Chinese government.
The executive order indicates progress toward the sale of TikTok’s U.S. assets, though key matters remain unresolved, particularly regarding how the U.S. entity will manage TikTok’s critical recommendation algorithm.
“There was some resistance on the Chinese side, but the fundamental goal was to keep TikTok operational while ensuring Americans’ data privacy is protected as required by law,” Vance told reporters during an Oval Office briefing.
The order stipulates that TikTok’s algorithm will be retrained and overseen by the U.S. company’s security partners, with operational control vested in the new joint venture.
Trump said he had spoken with Chinese President Xi Jinping, who expressed approval of the plan. “I spoke with President Xi, had a good talk, told him what we were doing, and he said go ahead with it,” Trump stated.
China’s foreign ministry reaffirmed on Friday that it “respects the will of enterprises and welcomes them to conduct business negotiations based on market principles to reach solutions compliant with Chinese laws and regulations while achieving a balance of interests.” Ministry spokesperson Guo Jiakun emphasized hopes for the U.S. to provide a “fair, open, and non-discriminatory business environment” for Chinese companies investing in America. The ministry declined to provide additional details on the deal. TikTok has not yet commented on the executive order.
Trump credited TikTok, which boasts 170 million U.S. users, with contributing to his reelection last year. He personally holds 15 million followers on his TikTok account, and the White House launched an official TikTok account last month. “This is going to be American-operated all the way,” Trump affirmed.
He named Michael Dell, founder and CEO of Dell Technologies; Rupert Murdoch, chairman emeritus of Fox Corp and News Corp; and “probably four or five absolutely world-class investors” as key participants in the transaction.
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The US government’s move to nationalize TikTok’s US operations signals a growing trend of tech sovereignty and data privacy prioritization, which could prompt stricter regulatory scrutiny on foreign tech in Oman and the Gulf region. For Omani businesses and investors, this underscores the need to diversify digital investment portfolios and explore partnerships in data-secure and locally compliant tech ventures. Smart entrepreneurs should capitalize on the emerging demand for secure digital platforms and consider strategic collaborations that emphasize data privacy and regulatory alignment.
