Trump Approves $14B TikTok Sale to US Investors

In a decisive move at the White House on Thursday, President Trump signed an executive order formally advancing the plan for American investors to purchase TikTok’s U.S. operations. The order explicitly declares that the proposed transaction complies with the 2024 law mandating that ByteDance divest its control over the popular video-sharing platform. Officials involved in the process have set a potential valuation for the U.S. operations at approximately $14 billion, a figure that underscores the immense commercial value of TikTok’s American user base and advertising revenue.

The executive order also outlines specific measures designed to ensure the security and integrity of the new venture once it is under American ownership. This focus on security protocols addresses long-standing concerns among U.S. lawmakers and intelligence agencies regarding the potential for user data to be accessed by the Chinese government through ByteDance. The deal structure, as advanced by the Trump administration, aims to create a firewall that severs the operational and data links between the U.S. entity and its former Chinese parent, thereby mitigating perceived national security risks.

A notable aspect of the announcement was President Trump’s reiteration that he had secured approval for the deal from his Chinese counterpart, Xi Jinping. This claim adds a complex geopolitical layer to the commercial transaction, suggesting a high-level diplomatic understanding between Washington and Beijing. Gaining China’s acquiescence for the divestment of a flagship technology asset like TikTok is critical, as Chinese regulations governing the export of key technologies could have otherwise blocked the sale. The acknowledgment of Xi’s approval indicates that behind-the-scenes negotiations have likely been extensive, balancing economic interests with strategic national concerns on both sides.

This development occurs against a backdrop of heightened global tensions. In a separate but contemporaneous geopolitical signal, European diplomats this week warned the Kremlin that NATO is prepared to respond with full force to any further violations of its airspace. This reminder of military readiness, as conveyed by officials familiar with the exchange, highlights the multi-front nature of current international relations, where economic decoupling in the tech sector coincides with steadfast deterrence in traditional security domains. The convergence of these events underscores the interconnectedness of commerce and security in contemporary statecraft.

The transaction’s implications will be closely analyzed by financial and policy experts. The involvement of figures like Nataliia Lipikhina, Head of EMEA Equity Strategy at JPMorgan Private Bank, suggests a focus on the deal’s impact on capital markets and investor sentiment. A successful $14 billion acquisition would represent one of the largest tech divestments in recent history, potentially creating a new, independent social media giant in the U.S. market and setting a precedent for how cross-border tech ownership disputes are resolved.

Further insights are expected from academics and former regulators, such as Sergei Guriev, Dean of the London Business School, and Andreas Dombret, a former member of the European Central Bank’s Supervisory Board. Their perspectives will likely address the broader regulatory landscape, including how other Western nations might approach similar concerns with Chinese-owned apps, and the long-term effects on global tech investment flows. The resolution of the TikTok saga could serve as a template, signaling a move towards more fragmented, sovereignty-aligned digital markets.