Trump Certifies $14B TikTok Sale Plan; Oracle–Silver Lake to Anchor U.S. Stake

What the executive order says

President Donald Trump signed an executive order declaring that his TikTok sale plan, a restructuring that separates the app’s U.S. operations from China’s ByteDance, “meets the national-security requirements” of the 2024 divest-or-ban law. The order also delays enforcement until Jan. 20 to complete the carve-out, line up investors, and secure Chinese approvals. The White House pegs the valuation at about $14 billion, a figure publicly cited by Vice President JD Vance.

Deal structure and valuation

Under the plan, a new U.S. company (“TikTok U.S.”) would be formed with Oracle and Silver Lake among investors taking roughly 50%; existing ByteDance shareholders would hold about 30%; and ByteDance would own <20% to comply with the divestment law. A seven-member board is envisaged with six American seats and one seat appointed by ByteDance. The $14 billion figure sits well below prior analyst estimates of $30–$40 billion for TikTok without its core algorithm, underscoring how intellectual-property control drives value.

Algorithm and data security

The order says TikTok’s recommendation algorithm used in the U.S. will be re-trained and monitored by U.S. security partners, with operational control housed in the new joint venture. The White House argues this framework keeps the app running while addressing data-privacy risks for 170 million U.S. users. Legal scholars note open questions remain, chiefly who ultimately controls the algorithm and how “re-training” will be verified.

Beijing’s role and ByteDance’s footprint

Trump said China’s President Xi Jinping signaled he would “go ahead” with the plan, though Chinese media offered different readings, reporting ByteDance might still play an operational role (some reports were later removed). Reuters also noted chatter that Abu Dhabi-based MGX could join Oracle and Silver Lake among principal investors, while Michael Dell and Rupert Murdoch were named by Trump as prospective participants. Formal Chinese approvals and final investor line-ups are still pending.

Politics, law and the road to a “clean break”

Republican lawmakers welcomed progress but demanded proof of a clean separation from China. Even with the executive order, multiple legal and practical hurdles remain: transferring U.S. operations, isolating or replacing software components, and documenting that ByteDance lacks effective control over code, content-moderation systems, and data pipelines. Any ambiguity around those elements could invite court challenges or renewed congressional scrutiny.

Market reaction and who’s exposed

Tech & media equities. Headlines around a certified TikTok sale plan tend to lift sentiment for named investors (e.g., Oracle) and relief-trade social-media peers that feared an outright ban; however, the $14 billion valuation, below many expectations, also signals execution risk and could cap exuberance until documents are public. ByteDance’s private valuation (recently cited above $330 billion via buybacks) is unlikely to move in tandem with the U.S. stub, highlighting how much value resides in non-U.S. businesses and IP.

Advertising & creators. For brands and creators, averting a shutdown removes near-term tail risk but does not eliminate policy uncertainty. Governance of the recommendation algorithm will influence ad performance, creator reach, and the app’s competitive stance versus Reels and Shorts.

Credit & M&A. A complex carve-out with ongoing licensing or re-training obligations could shape financing terms (escrows, indemnities, IP licenses). If Chinese or U.S. approvals impose conditions, investors may re-cut allocations or timing.

Why $14B, and what it implies

Two factors likely compress value versus prior chatter: (1) no guaranteed access to the original algorithm, forcing a fresh build or licensed variant; and (2) ongoing geopolitical risk, which raises discount rates and keeps exit optionality uncertain. The executive order explicitly calls for algorithmic re-training under U.S. oversight, which can preserve continuity but may carry transition costs and engagement risk if recommendations behave differently at scale.

The user base and product continuity

Trump, who credits TikTok with political reach and maintains 15 million followers, has emphasized “American-operated all the way.” Product-continuity questions center on data migration, trust & safety, and content moderation. Keeping daily active use steady through the transition will be crucial to support the $14 billion valuation and to justify investor capex on infrastructure and compliance.

Timeline and next steps

• Enforcement delayed to Jan. 20 to finalize structure, governance, and regulatory clearances.
• White House and investors to publish more detailed governance around source-code access, model weights, and audit rights.
• CFIUS-style review dynamics will continue de facto, even post-order, as agencies test whether the construct meets the statute’s intent.

What to watch

1. Final shareholder table (size of the Oracle–Silver Lake block; any MGX or other Gulf capital); 2) Algorithm treatment, full re-train, license, or hybrid; 3) Chinese approvals and any revenue-sharing with ByteDance U.S.; 4) Board authorities around data localization and security audits; and 5) Congressional oversight that could add further conditions before Jan. 20.