Trump Signs TikTok Deal

(MENAFN) In a significant policy move, President Donald Trump has issued an executive directive that transfers control of TikTok's U.S. division to a group of American and international stakeholders.

According to Trump, he discussed the decision with Chinese President Xi Jinping, who allegedly told him to “go ahead with it.”

TikTok, which is owned by Chinese tech giant ByteDance, surged in popularity among U.S. teens and young adults during the late 2010s.

Today, the platform boasts approximately 170 million American users. Its explosive rise led to fears that Chinese regulations could enable the Chinese government to access the personal data of users in the United States.

During his initial presidency, Trump sought to prohibit the app entirely, but his efforts were blocked by American courts.

In 2022, TikTok was prohibited from all U.S. government-owned devices. Two years later, Congress enacted the Protecting Americans from Foreign Adversary Controlled Applications Act, requiring TikTok's Chinese stakeholders to sell their shares by January 2025 to avoid a full ban.

Since reclaiming the presidency, Trump has postponed the enforcement of that mandate multiple times.

On Thursday, Trump directed that TikTok’s American operations be transferred to a newly formed U.S.-headquartered entity.

The executive action categorizes this transfer as a “qualified divestiture” in accordance with the 2024 statute and prohibits any “operational relationship” with ByteDance, including collaboration on algorithms or the exchange of user data.

The timeline for the required divestment has now been extended to January 20, 2026.

Vice President J.D. Vance has placed the valuation of the new U.S.-based company at $14 billion, a figure that is considerably lower than what some financial experts have projected for TikTok’s American assets, as reported by news agencies.

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