What Trump’s TikTok Order Really Means for a $14 Billion U.S. App

U.S. President Donald Trump signs an executive order at the White House in Washington, D.C. (REUTERS photo)

Washington, D.C. – 25 September 2025 - President Donald Trump signed an executive order on Thursday that greenlights a long-anticipated deal to transfer majority ownership of TikTok's U.S. operations to American investors, effectively averting a nationwide ban on the popular short-video app. The agreement values the newly formed U.S. entity at approximately $14 billion, a figure far below earlier estimates but sufficient to satisfy national security concerns stemming from its Chinese parent company, ByteDance.

The executive order declares that the proposed sale "meets the requirements" of the Protecting Americans from Foreign Adversary Controlled Applications Act, a 2024 bipartisan law that mandated ByteDance divest its U.S. assets or face a shutdown by January 19, 2025. Under the deal, ByteDance will retain less than a 20% stake in the new company, with the majority—around 80%—going to a consortium of U.S.-based investors including Oracle Corp., private equity firm Silver Lake, venture capital heavyweight Andreessen Horowitz, and the Abu Dhabi sovereign wealth fund MGX.

"This is a tremendous win for American innovation and security," Trump said during a White House press briefing, flanked by Vice President JD Vance and Commerce Secretary Howard Lutnick. Vance, who played a key role in negotiations, highlighted the $14 billion valuation as a "realistic price tag" that reflects the app's U.S.-specific assets while ensuring data sovereignty. Oracle, a longtime Trump ally, will serve as the primary technology partner, responsible for auditing TikTok's recommendation algorithm and storing American user data on U.S. servers to prevent potential access by the Chinese government.

The move caps months of high-stakes diplomacy and legal wrangling. Trump, who during his first term sought to ban TikTok outright, reversed course in 2024 amid campaign pressures from young voters and tech donors. He issued multiple extensions to the enforcement deadline, including one on June 19, 2025, pushing it to December 16, and another earlier this month. These delays allowed time for the deal to materialize, avoiding disruptions for TikTok's 170 million U.S. users—who collectively spend over 50 billion hours annually on the platform, according to company data.

TikTok's U.S. revenue has surged in recent years, reaching $18.4 billion in 2024, up 63% from the prior year, driven by advertising and e-commerce features. However, the forced divestiture has depressed its valuation; earlier bids in 2020 pegged the U.S. business at up to $50 billion, but ongoing scrutiny and regulatory hurdles led to the lower figure. The deal also includes provisions for ByteDance to license its core algorithm to the new entity for a transitional period, ensuring continuity in user experience.

Critics on both sides of the aisle have voiced concerns. Senate Intelligence Committee Ranking Member Mark Warner (D-VA) praised the order for addressing "legitimate spyware risks" but warned that the involvement of foreign funds like MGX could introduce new vulnerabilities. On the right, some conservatives, including Sen. Josh Hawley (R-MO), decried the valuation as a "fire sale" that undervalues American interests and potentially rewards ByteDance for years of alleged data mishandling. Civil liberties groups, such as the Electronic Frontier Foundation, argued the sale sets a precedent for government overreach into private tech mergers.

The transaction is expected to close by November 2025, pending final regulatory approvals from the Committee on Foreign Investment in the United States (CFIUS). White House officials expressed optimism, noting that the deal aligns with Trump's broader "America First" tech agenda, which includes incentives for domestic AI development and tariffs on Chinese imports.

As TikTok's fate hangs in the balance no longer, the app's influencers and creators breathed a sigh of relief. "This saves not just an app, but livelihoods," said popular creator Charli D'Amelio in a video posted moments after the announcement. For ByteDance, the partial exit marks a bittersweet chapter in its global expansion, but analysts predict it will free up resources for other markets.