Trump Approves Tiktok Divestment Deal, Bytedance Share Reduced Under 20%

U.S. President Donald Trump on Thursday signed an executive order initiating the sale of TikTok's American assets to U.S. and international investors, in line with a 2024 law addressing national security concerns.

Under the order, a new company valued at about $14 billion will be created. Vice President J.D. Vance noted the figure was far below earlier analyst estimates of $30–40 billion.

Speaking at the White House, Trump said the goal of the deal was to“protect the data of American users.” He stressed the company would be“entirely under U.S. management” and announced that investors including Michael Dell, Rupert Murdoch, and several global firms would participate. Trump added that he had raised the issue directly with Chinese President Xi Jinping, who signaled approval.

According to preliminary terms, Oracle and private equity firm Silver Lake will hold around 50 percent of TikTok U.S., while existing ByteDance shareholders will retain about 30 percent. ByteDance's overall stake will fall below 20 percent, in compliance with the 2024 law requiring divestment or shutdown by January 2025.

TikTok, with 170 million American users, has been at the center of political and security debates in Washington. While Trump has embraced the platform as key to his electoral success, some Republican lawmakers are pressing for full transparency to ensure all ties with the Chinese Communist Party are severed. A White House official said the new company's board would have seven members-six American and one representing ByteDance.

Analysts said the sale represents one of the most consequential corporate restructurings in recent years, combining political pressure with economic interests. They noted that the outcome will test whether Washington can enforce digital sovereignty without disrupting global technology markets.

Observers also warned that while the agreement could ease tensions with Beijing, it may set a precedent for broader restrictions on foreign-owned digital platforms operating in the United States.

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