President Donald Trump has signed an executive order allowing the creation of a new American company to take control of TikTok’s operations in the United States.
The move aims to address national security concerns under the 2024 law, which mandates a ban on the app unless Chinese ownership is removed.
Trump has extended the deadline for TikTok’s ban until January 20, 2026, to allow the agreement to be completed. According to the newly signed order, the American company set to take over is valued at around $14 billion, significantly lower than some analysts had projected.
Vice President JD Vance announced that TikTok’s algorithm — the most critical part of its technology — will be retrained, monitored by security partners, and placed under the full control of the new American entity. Investors will control the algorithm powering the U.S. version of TikTok, and Americans will hold six out of seven seats on the board of directors overseeing the platform. Under the order, China will own less than 20% of the new joint venture.
Prominent investors expected to participate in the deal include Michael Dell (CEO of Dell Technologies), Rupert Murdoch (Fox Corp & News Corp), along with other figures described as “world-class investors.”
Trump said he had spoken with Chinese President Xi Jinping, who, according to him, gave approval for the plan. However, neither TikTok nor the Chinese Embassy in Washington have issued official comments.
Under the agreement, U.S. TikTok will adopt a new algorithm — based on the existing one but retrained on American user data — with trusted security partners monitoring software updates, algorithms, and data flows, according to the White House order.
