Jens Asbjørn Bøgen
The short-video-app has 170 million users in the U.S. alone.
The short-video-app has 170 million users in the U.S. alone.
What is happening?
U.S. President Donald Trump signed an executive order aimed at securing TikTok’s future in the U.S. by facilitating its sale to American and global investors.
The move addresses national security concerns outlined in a 2024 law, which threatens to ban the app unless its Chinese parent company, ByteDance, divests its U.S. assets.
Enforcement of the ban is delayed until January 20 to give the deal time to close.
U.S. entity valued at $14 Billion
Vice President JD Vance revealed that the new U.S.-controlled version of TikTok will be valued at approximately $14 billion.
That’s significantly lower than prior estimates, some of which placed the company’s value between $30 billion and $40 billion without the algorithm.
ByteDance worth $330 Billion and rising
While TikTok’s U.S. arm is now pegged at $14 billion, ByteDance itself reportedly values the entire company at over $330 billion.
However, TikTok only represents a small portion of its overall business, which also includes a wide range of tech ventures, software products, and platforms outside the U.S.
The algorithm dilemma
The heart of TikTok’s success is its algorithm—the AI-driven engine behind its content recommendations.
Trump’s order claims that the algorithm will be retrained and monitored by U.S. security partners under the joint venture.
But experts warn that the specifics remain murky, especially regarding who will truly control this key technology.
Beijing stays quiet
Trump said he personally discussed the plan with Chinese President Xi Jinping and received a green light.
“I told him what we were doing and he said go ahead with it,” Trump said.
However, the Chinese government has not confirmed this, and neither the Chinese embassy nor ByteDance has issued public responses.
Conflicting reports in Chinese media
Chinese media outlets LatePost and Caixin published stories suggesting ByteDance would retain an operational role in the new U.S. TikTok entity.
According to those reports, ByteDance would oversee e-commerce, branding, and global coordination.
Both articles were later removed, raising further questions about transparency and control.
New U.S. company
According to Chinese sources, ByteDance will create a new U.S.-based company that will handle business operations such as digital security, software protection, and content moderation.
This subsidiary is part of the restructuring process, although its exact relationship to the joint venture remains vague.
Heavyweight investors
The joint venture is expected to include major American and international investors.
Michael Dell, Rupert Murdoch, and four to five other “world-class investors” will participate, according to Trump.
Oracle and Silver Lake, along with Abu Dhabi-based MGX, are expected to take a combined 45–50% ownership stake.
Minority stake and one board seat for ByteDance
ByteDance will retain under 20% ownership to comply with U.S. law. The new board will have seven members—six Americans and one ByteDance appointee.
This governance structure aims to ensure American oversight, while allowing ByteDance limited involvement in strategic decisions.
TikTok’s political power
Despite once calling for its ban, Trump now credits TikTok for helping him win reelection.
He boasts 15 million followers on the app and recently launched a White House account to boost engagement.
The platform’s 170 million U.S. users give it significant influence—especially among younger voters.
Lawmakers call for deeper scrutiny
Several Republican members of Congress remain cautious.
Representatives Brett Guthrie, Gus Bilirakis, and Richard Hudson urged the White House to ensure that the deal creates a full break from Chinese surveillance or influence.
They emphasized the importance of protecting American data and digital sovereignty.
This article is made and published by Jens Asbjørn Bogen, which may have used AI in the preparation
