TikTok’s U.S. Division Valued at $14 Billion

Darwin, 26 September- 

A step forward was taken Thursday (25 September) when President Donald Trump signed an executive order regarding TikTok’s U.S. operations. According to Vice President J. D. Vance, the newly formed company could be valued at approximately US $14 billion.

However, many analysts consider that estimate overly optimistic. TikTok’s parent company, China’s ByteDance, has itself been valued at over US $330 billion.

Under the terms of the new executive order, the provisions of the 2024 National Security Law will apply to ownership. That law stipulates that ByteDance may retain less than 20% of the U.S. share. It also states that if the U.S. branch shares are not sold by January 2025, TikTok’s operations in the U.S. could be shut down.

Yet, Trump said Thursday that he is postponing the enforcement of the law until 20 January, to allow time for transactions involving U.S. and international investors and to secure Chinese approval.

The order also states that control of TikTok’s key asset—the recommendation algorithm—must reside with the new U.S. company.

Vance said there had been some objections from the Chinese side, but emphasized that the primary objectives are to keep TikTok operational while ensuring data security for American users.

Trump claimed he spoke with China’s President Xi Jinping about the plan. “I told him what we are doing,” Trump said, “and he said—go ahead.”

Trump has often publicly credited TikTok for his success in last year’s presidential election. Currently, TikTok has about 15 million of Trump’s followers. Last month, the White House also launched an official TikTok account.

Neither TikTok nor the Chinese Embassy in the U.S. has commented on Trump’s executive order.
Sources: Reuters