US President Donald Trump has signed an executive order setting the framework for TikTok’s spinoff from its Chinese parent company ByteDance, ensuring that the move fits the national security requirements set under a 2024 law. The agreement allows TikTok’s US-based subsidiary to be transformed into a new joint venture valued at roughly $14 billion, as stated by Vice President JD Vance. However, the valuation comes in lower than the earlier market estimates, which had pegged TikTok’s standalone worth excluding its prized recommendation algorithm between $30 billion and $40 billion.
As per the agreement, the new US entity will oversee data privacy, security, and operation of TikTok’s algorithm, which will be retrained and monitored by American partners. “This is going to be American-operated all the way,” Trump said during an Oval Office briefing, adding that Chinese President Xi Jinping had expressed approval for the plan.
The ownership structure is comprised of a group of US and international investors. Oracle and private equity company Silver Lake are expected to take around 50%, while existing ByteDance shareholders, including General Atlantic and KKR, will keep about 30%. ByteDance will retain a minority share of less than 20%, in accordance with the 2024 law demanding its withdrawal. TikTok US will be governed by a new seven-member board, with six members held by Americans.
On the other hand, Chinese media reports stated that ByteDance will continue to play a role in areas such as e-commerce, branding, and international coordination, raising questions about the true extent of the separation. However, analysts have raised concerns about the uncertainty over how much control ByteDance may retain over TikTok’s recommendation system.
The settlement comes just months before the law’s enforcement deadline of January 20, 2026, after which TikTok would face a ban in the United States if divestment were not complete. Nonetheless, lawmakers from both parties have pushed for greater transparency in the deal’s final terms, warning that American users must be fully protected from potential Chinese surveillance.