Trump signs TikTok executive order, creates new $14 billion entity

Washington, Sep 26: US President Donald Trump has signed an executive order approving the deal that allows TikTok to continue operating in the United States.

Speaking at the White House on Thursday, Trump said he had a “very good talk with President Xi” and that “he gave us a go-ahead” on the agreement.

Under the executive order, TikTok’s US app will be run by a newly formed joint venture headquartered in the US. The order specifies that the company will be majority-owned and controlled by American investors, removing control from any “foreign adversary.”

A consortium of US investors, including Oracle, Silver Lake, and others, will hold the majority stake, while ByteDance, TikTok’s Chinese parent company, will retain less than 20 percent ownership.

Vice President JD Vance announced that TikTok’s US operations would be valued at $14 billion.

“We wanted to keep TikTok running while ensuring the protection of Americans’ data privacy,” Vance said. “This agreement allows users to continue using TikTok with greater confidence, knowing their data will be secure and not misused for propaganda.”

He further stressed that control of TikTok’s algorithm would remain with American investors.

“This deal guarantees that US investors and the American entity will control the algorithm. Decisions will be made based on business interests, not another government’s propaganda,” Vance added.

Trump also confirmed that he had spoken with Chinese President Xi Jinping last week, during which Xi approved the arrangement enabling TikTok to maintain its presence in the US.