Trump Signs Executive Order on TikTok, Establishes New $14 Billion Entity

US President Donald Trump has signed an executive order sanctioning a deal that will enable TikTok to remain operational in the United States.

During the signing of the order at the White House on Thursday, Trump said that he had a "very good talk with President Xi" and further included, "he gave us a go-ahead" concerning the agreement.

The Executive Order states that TikTok's US operations will be overseen by a "newly established joint venture based in the US.”

“It will be majority-owned and controlled by United States persons and will no longer be controlled by any foreign adversary.

The majority ownership of the new venture will be held by a consortium of US investors, including Oracle, Silver Lake, and a few others.

The order also specifies that ByteDance, the Chinese parent of TikTok, will hold "less than 20 per cent of the entity."

US-based TikTok would be worth $14 billion, Vice President JD Vance declared.

“We wanted to keep TikTok operating, but we also wanted to make sure that we protected Americans' data privacy as required by law. This deal really does mean that Americans can use TikTok, but actually use it with more confidence than they have in the past, because their data is going to be secure and it's not going to be used as a propaganda weapon against our fellow citizens,” he added.

He also highlighted that U.S. investors would be the ones in charge of TikTok's algorithm.

“This deal ensures that the American entity and the American investors will actually control the algorithm. We want to make sure that our people and our investors actually make these decisions based on what's good for their business, as opposed to what's good for another government's propaganda arm,” he noted.

Trump spoke on the phone last week with Chinese President Xi Jinping, who allegedly sanctioned the TikTok deal, allowing the popular social media app to continue operating in the US.