President Donald Trump on Thursday signed an executive order proposing a US version of TikTok, which reduces Chinese ownership to 20% and places control in the hands of Trump’s allies.
During a White House signing ceremony, Trump announced that “highly sophisticated” investors would manage the app. Notable figures include Larry Ellison, founder of Oracle, tech investor Michael Dell, and media mogul Rupert Murdoch, with investment firms Silver Lake Management and Andreessen Horowitz are also likely participants.
Protecting National Security
Trump emphasized that the divestiture would allow the 170 million American TikTok users to continue enjoying the app while safeguarding national security. He stated, “The proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security.”
Despite the involvement of Trump allies, he assured reporters that the app would remain politically neutral. “If I could make it 100% MAGA, I would, but it’s not going to work out that way,” he said. “Every group, every philosophy, every policy will be treated very fairly.”
The US version of TikTok will feature a homegrown algorithm, often referred to as the app’s “secret sauce.” A White House official confirmed that the algorithm would undergo continuous monitoring to prevent undue influence.
This new arrangement responds to a law passed under Joe Biden, requiring TikTok’s Chinese owner, ByteDance, to sell its US operations or face a ban, as US policymakers have long warned that China could exploit TikTok to gather data on Americans.
Extended Deadlines
Trump has delayed enforcement through various executive orders, most recently extending the deadline to 16 December, 2025. Thursday’s order granted an additional 120-day delay, pushing the transaction completion date to 23 January.
Vice President JD Vance, who led the TikTok solution team, estimated the U.S. entity’s value at around $14 billion. However, he noted that investors would ultimately determine the price.
When asked about Chinese approval, Trump stated that President Xi Jinping greenlit the deal during a recent phone call. “I have great respect for President Xi, and I appreciate that he approved the deal,” Trump said.
TikTok has not commented on the deal, and Beijing has remained largely silent. Following the Trump-Xi call, state broadcaster CCTV reported that Xi emphasized support for market-based negotiations that comply with Chinese laws.
