President Donald Trump has signed an executive order that outlines a proposed sale of TikTok’s US operations, a significant move aimed at addressing national security concerns while preserving the platform's presence in the United States. This deal would reduce Chinese ownership in TikTok's US entity to 20 percent, effectively placing control of the popular short-form video platform in the hands of investors allied with the Trump administration.

During a White House signing ceremony, Trump detailed the future management structure, indicating that the US version of TikTok would be overseen by “highly sophisticated” investors. This group includes notable figures such as Larry Ellison, the founder of cloud computing giant Oracle; technology investor Michael Dell; and media magnate Rupert Murdoch, who are expected to play pivotal roles in shaping the platform’s direction.

Vice President JD Vance, who led the team responsible for devising a solution for TikTok, confirmed that the newly established U.S.-based entity is currently valued at approximately $14 billion. While acknowledging that the final price would ultimately be determined by the investors, Vance underscored that this valuation is substantially lower than some analyst projections for the globally popular app.

A critical aspect of the agreement involves how TikTok’s proprietary algorithm, often referred to as its “secret sauce” and central to its rapid global expansion, will be handled. Trump assured that the US version of TikTok would incorporate a domestic iteration of this algorithm. Furthermore, a White House official added that the US algorithm would undergo “continuous monitoring” to ensure it remains “not being unduly influenced,” addressing concerns about potential external manipulation.

The executive order also addresses the previously mandated US ban on TikTok. Trump has postponed the enforcement of a law requiring ByteDance, TikTok’s Chinese parent company, to divest its US operations or face a ban. This latest extension pushes the deadline to January 23, 2026, providing crucial additional time to facilitate the complex separation of TikTok’s US operations from the global platform, secure necessary investment commitments, and obtain approval from Chinese authorities. The original law, passed under President Joe Biden’s administration, aimed to mitigate fears that China could exploit TikTok to collect data from American users or exert influence through its algorithm.

Significantly, President Trump stated that Chinese President Xi Jinping approved the transaction during a phone call last week. Trump expressed “great respect for President Xi” and appreciated his approval, emphasizing that Chinese support was essential for the deal’s proper execution. Following this call, Chinese state broadcaster CCTV reported that Xi reiterated Beijing’s support for market-based negotiations conducted in accordance with Chinese law. As of now, TikTok itself has not commented on the deal, and Chinese officials have largely remained silent on the specifics.

This executive order marks a major step toward creating a US-controlled version of TikTok. The deal will now proceed through established investment and regulatory channels, with the designated investors expected to be instrumental in defining the platform’s future trajectory in the United States.