Washington [US], September 26: President Donald Trump signed an executive order declaring that his plan to sell TikTok's U.S. operations to U.S. and global investors will address the national security requirements in a 2024 law.
The new U.S. company will be valued at around $14 billion, Vice President JD Vance said, putting a price tag on the popular short video app far below some analyst estimates.
Trump has delayed enforcement of the law that bans the app unless its Chinese owners sell it until December 16 amid efforts to extract TikTok's U.S. assets from the global platform, line up American and other investors and win approval from the Chinese government.
The publication of the executive order shows Trump is making progress on the sale of TikTok's U.S. assets, but numerous details need to be worked out, including who will own the new company's most important 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 told reporters at an Oval Office briefing.
Trump said, referring to Chinese President Xi Jinping: "I spoke with President Xi. 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 request for comment. TikTok did not immediately comment on Trump's action.
Trump has credited TikTok, which has 170 million U.S. users, with helping him win reelection last year and has 15 million followers on his personal account. The White House also launched an official TikTok account last month.
"This is going to be American-operated all the way," Trump said.
He added that Michael Dell, Rupert Murdoch and "probably four or five absolutely world-class investors" would be part of the deal.
The White House did not discuss how it came up with the $14 billion valuation.
TikTok's Chinese parent, ByteDance, currently values itself at more than $330 billion, according to its new employee share buyback. TikTok contributes a small percentage of the company's total revenue.
Source: Fijian Broadcasting Corporation
