United States President Donald Trump on Thursday signed an executive order directing that TikTok’s US operations be sold to American and international investors.
According to Reuters on Friday, the order mandates that companies bidding for TikTok comply with the national security requirements of the 2024 law, which would otherwise ban the app unless its Chinese owners sell it.
Speaking to reporters during an Oval Office briefing on Thursday, Vice President James Vance stated that the newly established US entity would be “valued around $14 billion.
Advertisement
READ MORE: Rihanna, A$AP Rocky Welcome Baby Girl
“We actually think this is a good deal for investors, but they will make a determination about what they want to invest and what they think is the proper value,” he said.
On Thursday, the White House postponed the law’s enforcement date to January 20 to allow time for the transaction, investor commitments, and negotiations with Chinese authorities.
The release of the executive order indicates that Trump is advancing the sale of TikTok’s US assets.
However, key details are still unresolved, including how the U.S. company would manage TikTok’s most valuable asset: its recommendation algorithm.
“There was some resistance on the Chinese side, but the fundamental thing that we wanted to accomplish is that we wanted to keep TikTok operating, but we also wanted to make sure that we protected Americans’ data privacy as required by law,” Vance said.
Reuters reports that Trump’s order states the algorithm will be retrained and overseen by the U.S. company’s security partners, with its operation placed under the control of the new joint venture.
Trump stated that Chinese President Xi Jinping had expressed approval of the plans.
“I spoke with President Xi,” Trump said. “We had a good talk, I told him what we were doing, and he said go ahead with it.”
The Chinese embassy in Washington did not immediately respond to a Reuters request for comment, and TikTok has yet to comment on Trump’s action.
Trump has credited TikTok, which boasts 170 million U.S. users, with aiding his reelection last year. He has 15 million followers on his personal TikTok account, and the White House launched an official account on the platform last month.
“This is going to be American-operated all the way,” Trump said.
He stated that Michael Dell, founder, chairman, and CEO of Dell Technologies; Rupert Murdoch, chairman emeritus of Fox Corp and News Corp; and “probably four or five absolutely world-class investors” would be involved in the deal.
