WASHINGTON – President Donald Trump signed an executive order on Thursday greenlighting the long-awaited sale of TikTok’s U.S. operations, marking a dramatic step to resolve the national security concerns raised by the app’s Chinese ownership. The new U.S.-based company is expected to be valued at about $14 billion, Vice President JD Vance said, far below some earlier market estimates.

Under the order, TikTok’s U.S. assets will be transferred to a new joint venture backed by U.S. and international investors, including Oracle, Silver Lake and MGX, with the goal of creating a platform fully controlled from the United States. Enforcement of a 2024 law banning TikTok unless its Chinese owners divest has been delayed until January 20, giving negotiators more time to finalize the deal and win Beijing’s approval.

Trump emphasized that the arrangement would safeguard Americans’ data privacy. According to the White House, TikTok’s prized recommendation algorithm will be retrained under the supervision of U.S. security partners and will be managed by the new U.S. company. ByteDance will retain less than 20% ownership and will appoint just one of seven board members.

“This is going to be American-operated all the way,” Trump told reporters, citing conversations with Chinese President Xi Jinping who, he said, had given his consent. Trump also named high-profile business leaders including Michael Dell and Rupert Murdoch among the incoming investors.

Despite the order, questions remain over how the U.S. entity will handle TikTok’s core technology. Analysts point out the algorithm is key to the platform’s success, while Chinese media reports have suggested ByteDance may still retain significant influence over certain operations.

With 170 million U.S. users, TikTok has become a cultural and political force, one Trump has credited with boosting his reelection campaign. The White House also launched an official TikTok account last month.

Republican lawmakers welcomed the deal but demanded transparency to ensure the arrangement truly cuts ties with the Chinese Communist Party. Meanwhile, the agreement signals the biggest restructuring of a Chinese-owned tech platform operating in the U.S., potentially setting a precedent for future cross-border technology disputes.