By: Jerome Brookshire

When President Donald Trump signed an executive order on Thursday addressing the future of TikTok’s U.S. operations, he placed his political imprimatur on one of the most complex technology transfers in recent memory. The move came amid years of heightened tension over Chinese influence, data security, and the global reach of digital platforms. As Reuters reported, the executive order outlined Trump’s plan to reshape TikTok into an American-operated company, valued at approximately $14 billion, and designed to comply with a 2024 law requiring the app’s divestiture from its Chinese parent, ByteDance.

The order represents a milestone in an ongoing tug-of-war over the app, which boasts 170 million U.S. users and plays an outsized role in American politics and culture. Trump’s plan, however, also underscores the political, legal, and financial complexities involved in untangling TikTok from ByteDance’s global infrastructure, particularly its algorithm-driven recommendation system—widely regarded as the beating heart of the app.

Vice President JD Vance, speaking alongside Trump during an Oval Office briefing, confirmed that the new TikTok entity would be valued at around $14 billion. That figure is dramatically lower than analyst estimates. According to the report on Thursday at Reuters, some Wall Street analysts had valued TikTok’s U.S. operations at between $30 billion and $40 billion without the algorithm—raising immediate questions about whether Trump’s deal undervalued one of the most powerful digital platforms in the world.

The order stipulates that the algorithm will not be controlled directly by ByteDance but will instead be retrained and monitored under the oversight of American security partners within the new U.S.-based joint venture. The executive order states that this arrangement is critical to meeting the “national security requirements” set forth in the 2024 law.

Still, as the Reuters report noted, questions remain unanswered. Alan Rozenshtein, a professor at the University of Minnesota Law School, highlighted the lack of clarity: “The problem is that the president has certified the deal, but he has not provided a lot of information on the algorithm.” The concern, he suggested, is that ByteDance might retain more influence over TikTok’s recommendation engine than the administration has acknowledged.

A striking element of the rollout was Trump’s assertion that Chinese President Xi Jinping had signaled support for the restructuring plan. “I spoke with President Xi,” Trump told reporters. “We had a good talk, I told him what we were doing and he said go ahead with it.”

Reuters reported that China’s Foreign Ministry later struck a cautious tone, reiterating its stance that Beijing “respects the will of enterprises and welcomes them to conduct business negotiations on the basis of market rules.” Ministry spokesperson Guo Jiakun emphasized that China expects the United States to provide “an open, fair and non-discriminatory business environment” for Chinese companies.

This diplomatic framing shines a proverbial spotlight on the balancing act between the White House’s insistence on protecting U.S. national security and Beijing’s reluctance to appear to concede under Washington’s pressure.

The executive order also delayed the enforcement of the 2024 law’s ban on TikTok until January 20, 2025, giving negotiators more time to finalize the joint venture. Trump’s decision buys time not only for U.S. and global investors to finalize the acquisition but also for ByteDance and Chinese regulators to approve the terms.

As the Reuters report highlighted, the delay reflects both progress and uncertainty. On one hand, Trump has demonstrated that his administration is serious about executing the divestiture; on the other, the complexity of separating TikTok’s U.S. operations from its global infrastructure remains formidable.

Trump was eager to stress that TikTok U.S. would be “American-operated all the way.” To that end, he revealed that a cadre of influential investors had been assembled, including Michael Dell, the founder of Dell Technologies; Rupert Murdoch, the chairman emeritus of Fox Corp and News Corp; and several other “world-class investors.”

According to the information provided in the Reuters report, the White House stopped short of detailing how the $14 billion valuation was determined or what specific stakes these figures would hold. Still, their inclusion signals the administration’s intent to fold TikTok’s U.S. operations into a politically friendly circle of financiers with both capital and influence.

Despite Trump’s assurances, Reuters noted that Chinese media outlets initially reported a somewhat different arrangement. According to LatePost and Caixin—publications that later deleted their stories—ByteDance would continue to play a significant role, overseeing e-commerce, branding operations, and interconnections with international business lines.

These reports suggested that the $14 billion joint venture would primarily be responsible for digital security and localized operations, while ByteDance retained certain revenue rights. Though the details remain unclear, the suggestion of ByteDance’s ongoing influence complicates the administration’s narrative of a “clean break.”

A particularly noteworthy component of the deal is the composition of TikTok U.S.’s investor base. As Reuters reported, Oracle and Silver Lake, alongside Abu Dhabi-based MGX, are expected to hold a combined 45-50% ownership stake. These firms would partner with existing ByteDance investors, including Susquehanna International Group, General Atlantic, and KKR, who are likely to hold another 30%.

Oracle’s involvement has long been viewed as politically strategic. The company, which maintains close ties to the Trump administration, had previously vied for a role in managing TikTok’s U.S. operations during earlier negotiations. With its strong reputation in cloud infrastructure and cybersecurity, Oracle’s stake is intended to reassure lawmakers that TikTok’s American users will be insulated from Beijing’s surveillance.

Congressional Republicans were quick to welcome the broad strokes of the agreement while pressing for more details. Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson released a statement emphasizing that “as the details are finalized, we must ensure this deal protects American users from the influence and surveillance of CCP-aligned groups.”

Their caution reflects a broader Republican concern that ByteDance could retain a backdoor to influence content, harvest data, or interfere with the platform’s governance despite the restructuring. The Reuters report observed that the inclusion of a ByteDance-appointed board member in the new entity will be a sticking point in ongoing debates.

The executive order outlines a governance structure in which Americans will hold six out of seven board seats in TikTok U.S., with ByteDance entitled to appoint just one. Additionally, ByteDance’s ownership is capped at under 20%, in line with the requirements of the 2024 law.

This structure, according to the Reuters report, is designed to create a firewall between ByteDance and the sensitive data of U.S. users, while still acknowledging the reality of ByteDance’s global ownership. Yet critics remain skeptical about whether such guardrails will be sufficient to fully sever Chinese influence.

The political dimension of the deal cannot be overstated. Trump has repeatedly credited TikTok with helping him secure reelection, citing his 15 million followers on the platform. The White House itself recently launched an official TikTok account, reflecting the administration’s recognition of the app’s cultural reach.

As the Reuters report observed, Trump’s decision to preserve TikTok rather than pursue an outright ban highlights both political pragmatism and the recognition of the app’s value as a campaign tool. For a president deeply invested in direct communication with the public, TikTok provides a vital channel.

Beijing has walked a careful line in its official responses. The Foreign Ministry’s statement that China “respects the will of enterprises” but also “hopes the U.S. will provide an open, fair and non-discriminatory business environment” reflects a balancing act between nationalism and pragmatism.

As the Reuters report pointed out, Chinese regulators face their own domestic pressures not to appear weak in the face of U.S. demands. At the same time, allowing TikTok’s U.S. operations to be salvaged avoids a total collapse of one of ByteDance’s most valuable global assets.

Market analysts have expressed mixed views. Dan Ives of Wedbush Securities told Reuters that TikTok’s valuation at $14 billion may significantly understate its potential worth, particularly given its cultural dominance and advertising revenue stream. Others argue that without the algorithm, TikTok U.S. is effectively a shell company with little intrinsic value.

This divergence reflects the uncertainty of how the retrained algorithm will perform under U.S. oversight, and whether users will notice any differences in the app’s functionality.

The TikTok deal is emblematic of broader tensions between Washington and Beijing. For the United States, the executive order represents an effort to assert sovereignty over critical digital infrastructure. For China, it underscores the risks its companies face when expanding abroad in sensitive industries.

As Reuters reported, this case may become a template for future disputes involving Chinese tech firms in the United States, including companies operating in artificial intelligence, e-commerce, and data analytics.

President Trump’s executive order marks a major step toward reshaping TikTok’s future in America, but it also leaves significant questions unresolved. The valuation, the role of ByteDance, the treatment of the algorithm, and the eventual regulatory approval from both Washington and Beijing will determine whether this ambitious restructuring succeeds.

What is clear, as the Reuters report indicated, is that the stakes are high: for U.S. national security, for TikTok’s 170 million American users, and for the broader geopolitical contest between the United States and China.

For now, TikTok’s American future rests on a fragile balance between political will, market forces, and international diplomacy. The executive order may have delayed the deadline to January 2025, but the ultimate resolution will test not only the strength of Trump’s dealmaking but also the capacity of the U.S. and China to navigate their increasingly fraught technological rivalry.