Trump Approves $14B TikTok Sale Plan, Extends Ban Deadline

U.S. President Donald Trump on Thursday signed an executive order approving a plan to divest TikTok’s U.S. operations, valuing the new company at around $14 billion. The move marks the latest step under the 2024 law requiring foreign-controlled apps deemed security risks to be sold or face a nationwide ban.

Under the proposal, TikTok’s American venture would be backed by U.S. and international investors including Oracle, Silver Lake, and Abu Dhabi’s MGX. ByteDance, TikTok’s Chinese parent, would retain less than a 20 percent stake and a single board seat.

The order stipulates that TikTok’s recommendation algorithm — the core of the app’s popularity — will be retrained, monitored by U.S. security partners, and brought under the operational control of the new company.

Trump also extended the enforcement deadline for a potential ban to January 20, 2026, giving the consortium more time to finalize the deal.

Analysts note the $14 billion valuation is far below earlier market estimates for TikTok, raising questions about how much of the app’s value rests on its algorithm and whether ByteDance’s limited role will satisfy both U.S. regulators and Chinese authorities.

The deal’s success will hinge on resolving those concerns — and on securing Beijing’s approval, as China tightly controls the export of advanced recommendation algorithms.