Trump’s $14B TikTok Deal: How the App Lives On — Under U.S. Control

Sep 27, 2025

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TikTok fans in America can breathe a sigh of relief: the app isn’t going anywhere. In a dramatic pivot from earlier plans to ban the Chinese-owned platform, former President Donald Trump has signed an executive order approving a sweeping deal that would place TikTok’s U.S. operations under American majority control, while valuing the enterprise at $14 billion.

This article explores the full story — what led to this deal, how it works, the legal context, the skeptics and supporters, and what lies ahead.

The Context: Threat of a Ban vs National Security Concerns

To understand why this deal matters, you need the backstory:

In 2024, the U.S. passed a law titled the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA). This law required apps deemed controlled by foreign adversaries (especially ByteDance, TikTok’s parent) to divest U.S. assets or face a ban.
ByteDance was under a deadline to either sell off TikTok’s U.S. operations or see the platform shut down.
The law created pressure: national security concerns over data, algorithm influence, content moderation, and foreign access to American user information were central to the push.
TikTok’s defense and supporters warned that banning it would hurt millions of users, creators, and small businesses that depend on the platform’s reach.

In short: either ByteDance sells, or TikTok faces a forced closure in the U.S.

What Did Trump’s Executive Order Do?

On September 25, 2025, Trump signed an executive order declaring that the deal for TikTok’s U.S. arm meets the security requirements laid out by the law. The order gives 120 days for finalization and postpones enforcement action while the restructuring is carried out.

From official statements, here are the key terms and conditions:

TikTok U.S. will be restructured into a new joint-venture company based in the United States.
Majority ownership must be held by American investors.
ByteDance is to retain less than 20% ownership, choose one seat on a seven-member board, and be excluded from the security committee.
The sensitive parts — algorithm, code, content moderation, data flow — will all be under the purview of the new U.S. entity, with oversight and retraining of models, and American security partners will monitor software updates and operations.
All U.S. user data must be stored on trusted American infrastructures (for instance, Oracle is named as the cloud/security provider).
The executive order delays enforcement for 120 days so the divestiture can proceed.
The U.S. entity is valued at $14 billion, significantly below many analyst estimates of TikTok’s “true” worth without restrictions.
Trump claims the deal satisfies the security criteria of the law, allowing TikTok to continue operations in America under new ownership.

Deal Structure & Key Players

Here’s a breakdown of how the new ownership and control may be divided:

Stakeholder / Area	Role / Ownership
U.S. Investors (Oracle, Silver Lake, others)	Will hold majority (≈ 80%) stake, manage algorithm, security oversight, board control
ByteDance (Chinese parent)	Minority (less than 20%), one board seat, excluded from security committee
Algorithm & Recommendation Engine	Retrained under American oversight; new entity controls it
U.S. User Data	Stored in U.S. infrastructure, with restrictions to prevent foreign access
Time Frame	120 days from executive order for deal finalization
Valuation	$14 billion for the U.S. arm

Several high-profile names have been floated as potential U.S. investors: Oracle, Silver Lake, Michael Dell, Rupert Murdoch, among others. The management of the algorithm, data access, and security infrastructure is intended to reside fully in the U.S. domain under the deal.

Why $14 B? Valuation & Skepticism

Valuation of tech assets, especially in such a politically charged transaction, is always tricky. Critics point out several anomalies:

Many analysts previously valued TikTok’s U.S. segment at significantly more (some estimates ranged far above $20–$30B), especially if algorithm control is unrestricted.
Since algorithm and data access are restricted under the deal, the intrinsic value is arguably reduced, which helps justify a lower figure.
Skeptics warn that the valuation might underplay future revenue potential, giving U.S. buyers an advantageous bargain.
The ongoing minority stake for ByteDance means it can still benefit from licensing and service agreements, affecting how much value is really shifted.

A lower valuation helps ease political resistance to the deal, but it raises questions about fairness to ByteDance and whether U.S. investors are getting a steep discount.

Legal & Political Challenges

This deal doesn’t close all objections — many hard questions remain:

Constitutional issues: Forced divestment implicates free speech, property rights, and due process arguments. Opponents may challenge whether the law’s demands constitute government overreach.
ByteDance influence: Even with a minority share, ByteDance could retain influence through licensing, service agreements, or algorithmic cooperation. Critics fear this might undermine the “clean break” the law demands.
Algorithm control: The heart of TikTok’s power is its recommendation engine. Will the “retrained” algorithm behave as dynamically? Will it replicate existing engagement patterns?
Compliance & enforcement: Ensuring the new entity doesn’t sneak in foreign control or backdoor influence will require rigorous audit, oversight, and transparency.
Chinese government buy-in: Trump claims China’s President Xi approved the plan. If Beijing retracts or resists, the deal could collapse or lead to international diplomatic friction.
Political content concerns: With control moved to U.S. hands, critics will question whether content moderation or algorithmic biases could tilt politically.
Timeline & execution risk: The 120-day window is tight. Any delays in legal, financial, regulatory, or cross-border approvals could jeopardize the transition.

What It Means for Users, Creators & the Industry

For typical users, changes may be gradual. But over time, several shifts are likely:

The feed and recommendations may evolve as algorithms retrain on U.S. data, potentially altering which content trends.
The experience may become more stable — avoiding bans or app store removal risks.
Content moderation standards may shift toward U.S. norms, with perhaps stricter enforcement of some guidelines.
Monetization and commerce: With U.S. investors pushing returns, there could be more emphasis on ads, shopping, creator monetization tools.
For creators and small businesses, this deal removes uncertainty about platform continuity — at least for now.
For the tech industry, this sets a precedent: foreign apps with large user bases might be compelled to localize ownership or control under national security scrutiny.

What’s Next: Timeline & Outcomes

Here’s a possible roadmap:

120-day period: Finalize legal, financial, regulatory details, approve cross-border transfers.
Board and oversight installation: New U.S. board, security committees, algorithm control handoff.
Algorithm retraining and migration: Build a U.S.-based variant that preserves engagement while complying with restrictions.
Monitoring & audits: Ensure the new entity does not revert to Chinese control.
Challenges and lawsuits: Expect legal pushback from stakeholders on valuation, forced divestment, First Amendment, etc.
Long-term evaluation: Watch real-world changes in user experience, content, growth, and platform evolution.

The outcome could either solidify U.S. control over TikTok or face court reversals and political blowback if the deal is seen as flawed.

Final Thoughts

Trump’s deal to preserve TikTok in America under a $14 billion valuation and U.S. majority control is likely the most consequential tech-sovereignty transaction in recent years. It walks a delicate tightrope: enabling continued user access, addressing security fears, balancing property rights, and preserving China’s partial interests.

Whether the deal succeeds or unravels, it represents a turning point in how governments approach global platforms, data sovereignty, and algorithmic power. TikTok’s future in America will now depend on execution, oversight, and the balancing act between national security and digital freedom.

Disclaimer

This article is for informational and educational purposes only and does not constitute legal, financial, or advisory guidance. All events and claims are based on publicly available reporting and may change as the situation evolves.

About the author

I’m Himanshu Dhar, a dedicated MIS trainer proudly associated with I Turn Institute. My journey in the realm of data management and automation spans over 14 enriching years. My passion for this field extends to freelancing projects, where I bring real-world practicality into my teaching. My impact in education is marked by the success of over 25,000 students I’ve had the privilege of mentoring, hailing from diverse backgrounds. Beyond the classroom, I’ve had the honor of conducting corporate training sessions and seminars, catering to the unique needs of businesses. Let’s unlock your potential together in the realm of data analysis and automation.