Chinese ownership of TikTok will be cut to 20 percent under a deal announced at the White House, with U.S. President Donald Trump insisting the move will safeguard national security while keeping the app available to its 170 million American users.
At a signing ceremony on Thursday, Trump revealed that the U.S. entity would be run by “highly sophisticated” investors — including Oracle founder Larry Ellison, tech investor Michael Dell, and media mogul Rupert Murdoch. Investment giants Silver Lake Management and Andreessen Horowitz are also believed to be part of the consortium.
“The proposed divestiture would allow the millions of Americans who enjoy TikTok every day to continue using it while also protecting national security,” Trump said in the executive order.
The U.S. version of TikTok will also feature a domestically managed version of its prized algorithm, often described as the app’s “secret sauce,” which propelled it to become one of the world’s most popular platforms. A White House official added that the algorithm would be “continuously monitored” to ensure it is “not being unduly influenced.”
The restructuring stems from a law passed under former President Joe Biden, requiring ByteDance to sell its U.S. operations or face a ban in its largest market. Trump, who has repeatedly extended enforcement deadlines, on Thursday granted a new 120-day delay, setting a final deadline of January 23, 2026 to complete the deal.
Vice President JD Vance, who led the negotiations, estimated the U.S. entity’s value at $14 billion, though he noted the final price would depend on the investors.
Trump also confirmed that Chinese President Xi Jinping approved the deal during a recent phone call. “I have great respect for President Xi, and I very much appreciate that he approved the deal, because to get it done properly, we really needed the support of China,” he said.
China’s foreign ministry echoed that sentiment on Friday. Spokesman Guo Jiakun reiterated Beijing’s call for an “open, fair, and non-discriminatory” environment for Chinese firms operating in the United States.
TikTok has not yet commented on the proposed structure.
