Trump signs order advancing $14 billion TikTok sale to address national security concerns

The new U.S.-based entity set to acquire TikTok is valued at $14 billion, with enforcement of the divest-or-ban deadline delayed until January 20, 2026, to finalize the deal and obtain regulatory approvals

U.S. President Donald Trump has signed an executive order approving a proposed sale of TikTok’s U.S. operations to American and international investors, asserting that the move satisfies national security requirements outlined in a 2024 law targeting foreign-owned tech platforms.

The new U.S.-based entity, which will take over TikTok’s operations in the country, is projected to be valued at approximately $14 billion, according to Vice President JD Vance. The figure falls well below earlier market estimates but is considered sufficient to finalize the sale and meet regulatory demands. The order also delays enforcement of the divest-or-ban deadline until January 20, 2026, allowing more time to finalize the complex transaction and secure approvals from both U.S. and Chinese authorities.

Data security and algorithm control at the core

A central concern in the negotiations has been the handling of user data and TikTok’s powerful recommendation algorithm. Trump's executive order states that the algorithm will be retrained under U.S. oversight and monitored by designated security partners. The operation and control of the algorithm will remain within the new U.S.-based joint venture to ensure compliance with American data privacy laws.

"There was some resistance from China, but our priority was safeguarding American users’ data while allowing TikTok to remain operational," said Vance during a White House briefing.

Trump confirmed that Chinese President Xi Jinping has signaled informal support for the plan. "We had a good conversation," Trump said. "I told him what we were doing and he said go ahead."

China responds, TikTok silent

China's Foreign Ministry responded cautiously, urging the U.S. to maintain a fair environment for Chinese businesses. TikTok has yet to issue an official statement on the development. The app currently has over 170 million users in the U.S., including 15 million followers on Trump’s own account.