President Donald Trump has advanced a plan for American investors to acquire TikTok’s U.S. operations at a valuation of about $14 billion, a figure that falls below earlier projections of $35 billion to $40 billion.
In an executive order signed Thursday, Trump confirmed that the transaction complies with the 2024 law requiring ByteDance Ltd. to divest control of TikTok or face a nationwide ban.
The proposed deal would reduce ByteDance’s stake in TikTok U.S. to less than 20% with the majority owned by American investors.
Vice President JD Vance, who played a central role in shaping the transaction, said the estimated $14 billion valuation aligns with expectations for TikTok’s U.S. advertising revenues by 2026.
Industry analysts, however, argue that the valuation undervalues one of the world’s most influential social media platforms.
“The suggested value looks like daylight robbery,” said Vey-Sern Ling, senior equity adviser for Asia technology at Union Bancaire Privee.
Oracle Corp. is expected to play a central role by securing U.S. user data in its cloud infrastructure and overseeing the retraining of TikTok’s recommendation algorithm.
Other investors in talks include Silver Lake Management LLC and Abu Dhabi-based MGX, with the group negotiating board seats in the new U.S. venture.
While Trump claimed that Chinese President Xi Jinping has given his approval, Beijing has not publicly confirmed its stance.
The Chinese embassy in Washington reiterated that the U.S. should provide “an open, fair and non-discriminatory environment for Chinese investors.”
The valuation controversy highlights the complexity of pricing TikTok’s U.S. operations, given uncertainties surrounding its technology and algorithm licensing.
Under the current proposal, the U.S. entity would lease a copy of TikTok’s algorithm from ByteDance and retrain it under Oracle’s supervision.
Analysts warn that the arrangement may reduce the platform’s immediate valuation due to risks tied to technology transfer and operational independence.
Lawmakers in Congress have already pledged to scrutinize the deal, raising concerns about whether it fully severs ByteDance’s control.
Representative Raja Krishnamoorthi, the top Democrat on the House Select Committee on the Chinese Communist Party, said Congress must be provided with full details of the agreement before its approval.
The order gives the parties 120 days to finalize the transaction, the fifth deadline extension granted under the divest-or-ban framework. Failure to complete the deal by January would expose TikTok to a potential prohibition in the U.S. market.
For now, the proposed $14 billion valuation leaves many investors skeptical, with some viewing the figure as aligned with revenue forecasts and others arguing that it discounts TikTok’s market dominance and brand value in the United States.