US President Donald Trump has signed an executive order effectively approving the sale of TikTok’s operations in the country to an American investor group. This order ensures the social media app will continue operating in the US. US Vice President J.D. Vance stated that the deal values TikTok USA at approximately $14 billion.
TikTok’s value revealed
Under the national security law signed by former President Joe Biden, TikTok was required to either divest its US operations or be banned from the country. The executive order Trump signed effectively blocks the Justice Department or the Attorney General’s Office from enforcing the law for 120 days while the sale plan submitted to the President is implemented.
TikTok’s owner, ByteDance, has not yet publicly disclosed the content of the agreement or the executive order. However, the company stated in a statement on September 19th that it “will work in accordance with applicable laws to ensure TikTok remains accessible to US users.”
Trump announced that he discussed the decision with Chinese President Xi Jinping and received his approval. In a briefing with reporters, Trump said, “I spoke with President Xi, and we had a good conversation. I explained what we were doing, and he said, ‘Go ahead.’”
According to the executive order, a new board of directors will be established for TikTok’s US operations. The app’s recommendation algorithm, source code, and content moderation system will be transferred to its new US owners. Under the agreement, Oracle will oversee the app’s security operations, and TikTok will provide cloud computing services to the US.
