Trump Saves TikTok in $14 Billion Deal — But China Still Holds the Cards

A $14B deal keeps TikTok alive in the U.S.—for now. But Beijing’s approval could change everything.

President Donald Trump has signed an executive order approving a $14 billion joint venture that effectively rescues TikTok’s U.S. operations from a looming ban. The decision halts enforcement of the 2024 national security law that forced ByteDance to divest or shut down TikTok in America.

“This is going to be American-operated all the way,” Trump said, naming Oracle, Silver Lake, and Abu Dhabi’s MGX as principal investors. ByteDance’s stake will remain below 20%, pending Beijing’s approval.

A $14B Lifeline — at a Discount

Vice President J.D. Vance confirmed the new valuation at $14 billion, sparking debate among analysts who argue the figure undervalues TikTok’s U.S. business.

“Without its core algorithm, TikTok’s worth drops fast,” said Dan Ives of Wedbush Securities, calling the price “a steep discount.”

Algorithm Control: The Real Battle

At the center of the deal lies TikTok’s secret sauce — its recommendation algorithm. The new U.S. entity will retrain the algorithm on American data, under Oracle’s oversight, but experts warn key details remain unclear.

Alan Rozenshtein, law professor at the University of Minnesota, noted:

“The president certified the deal, but offered little transparency about how the algorithm will actually be controlled.”

Leaked Chinese reports (since deleted) suggest ByteDance may retain a role in global operations and revenue, blurring the line between “American-run” and “China-owned.”

Geopolitics in the Feed

Trump claimed that Chinese President Xi Jinping personally approved the plan, but Beijing’s response has been muted. China’s foreign ministry urged the U.S. to ensure a “fair and non-discriminatory” environment — a diplomatic way of saying the deal’s not final.

Meanwhile, several Republican lawmakers have voiced skepticism, warning the White House to ensure the platform remains free from CCP-linked influence.

What It Means for Marketers

For brands and advertisers, the immediate crisis is over. TikTok’s 170 million U.S. users remain accessible, preserving one of the most valuable youth marketing channels. But agencies are staying cautious.

“We can breathe easier for now,” said one ad executive, “but no one’s locking in five-year TikTok budgets until China signs off.”

Next Steps

The Department of Justice has paused enforcement until December 16, giving negotiators time to finalize details and await Beijing’s response. The new TikTok U.S. entity will have a seven-member board, six Americans and one ByteDance appointee.

Until China makes its move, TikTok’s fate hangs between Washington politics and Beijing’s final approval.

Also read:

1. Trump Returns to TikTok, Says Gen Z ‘Owes Me Big’ After Saving the App