Trump Delays TikTok Ban $14B US Deal Nears
Trump Delays TikTok Ban as $14 Billion U.S. Deal Takes Shape
WASHINGTON – A new U.S.-based TikTok company is moving closer to reality, with an estimated value of around $14 billion, Vice President JD Vance confirmed Thursday. The figure is far below some Wall Street projections, but marks a major step in Washington’s effort to bring the popular short-video app under American control.
President Donald Trump signed an executive order delaying the enforcement of a ban on TikTok until January 20. The move gives more time to finalize a deal that would see TikTok’s U.S. assets spun off into a separate company, backed by American investors, and approved by Chinese authorities.
“This is going to be American-operated all the way,” Trump told reporters, adding that the agreement was designed to protect U.S. user data while keeping the platform online. Trump also said Chinese President Xi Jinping gave his personal approval for the plan during a recent conversation.
Under the deal, TikTok’s prized recommendation algorithm will be retrained and overseen by U.S. security partners. A new joint venture will control its operations. Still, analysts say key questions remain about how much influence ByteDance, TikTok’s Beijing-based parent, will retain.
Vice President Vance acknowledged Chinese pushback but said the administration’s priority was safeguarding American privacy. “We wanted to keep TikTok operating, but we also wanted to make sure we protected Americans’ data,” he said.
Who Will Own TikTok U.S.?
According to officials familiar with the negotiations:
Oracle and private-equity firm Silver Lake will take roughly 50% ownership.
ByteDance investors such as KKR, General Atlantic, and Susquehanna International will control about 30%.
ByteDance itself will hold under 20%, satisfying a 2024 law requiring the company to divest.
Reports also indicate Abu Dhabi-based MGX may join Oracle and Silver Lake as key stakeholders.
The White House said the new TikTok U.S. board will have seven members, with six Americans and one ByteDance appointee.
A Political and Business Balancing Act
Trump credited TikTok with helping him connect with voters during last year’s campaign, noting his 15 million followers on the platform. The White House also launched its own official account last month.
The administration has tapped billionaire investors Michael Dell and Rupert Murdoch, along with several others, to participate in the deal.
Still, the valuation has raised eyebrows. While Washington put TikTok’s U.S. business at $14 billion, ByteDance’s internal valuation tops $330 billion. Analysts like Dan Ives of Wedbush estimate TikTok’s U.S. arm could be worth $30–40 billion without the algorithm.
Pushback From Lawmakers
Some Republicans in Congress say they want to ensure the deal cuts all ties with Beijing. “We must ensure this deal protects American users from the influence and surveillance of CCP-aligned groups,” said Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson in a joint statement.
For now, TikTok remains online for its 170 million U.S. users, but the clock is ticking toward January. Whether the deal satisfies both Washington and Beijing will determine if the app continues to operate freely in the United States.
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