President Donald Trump has sealed a deal that values TikTok’s US operations at just $14 billion. A fraction of what experts expected and far below parent company ByteDance’s $330 billion worth.
The executive order clears the path for American investors to control TikTok’s US business while keeping the popular app alive for 170 million American users. Vice President JD Vance announced the $14 billion price tag as Trump signed the paperwork at the White House.
American Investors Take Control of TikTok Operations
The deal creates a new joint venture where ByteDance keeps less than 20% ownership. Oracle, Silver Lake, and Abu Dhabi’s MGX investment fund will grab roughly 45% of the company. ByteDance investors and new stakeholders will own the remaining 35%.
Oracle CEO Larry Ellison, media mogul Rupert Murdoch, and Dell Technologies CEO Michael Dell join the investor group. Trump called them “very sophisticated Americans” who will run the operation.
“It’s owned by Americans, and very sophisticated Americans. This is going to be American operated all the way.” Trump said during the signing ceremony.
Oracle will handle security operations and provide cloud computing services for the new TikTok US firm. The tech giant already operates data centers and will build a $20 billion facility in the United Arab Emirates.
Massive Discount Stuns Wall Street
The $14 billion valuation shocked investors who expected TikTok US to fetch $30-40 billion. ByteDance itself is worth $330 billion, making TikTok’s US slice worth just 4% of the parent company’s value.
At $14 billion, TikTok US carries a price-to-sales ratio of 1.4 times, similar to mature, slow-growth companies rather than a fast-growing social media platform. Facebook’s Meta trades at much higher multiples despite slower growth rates.
Industry analysts question whether the low price reflects political pressure or genuine market conditions. TikTok generates billions in US advertising revenue, making the discount appear unusually steep.
UAE Investment Raises Foreign Influence Questions
The inclusion of UAE’s MGX fund surprised observers since Trump emphasized “American investors” would control TikTok. MGX recently deposited $2 billion in a cryptocurrency startup founded by the Trump family.
Two Democratic senators asked inspectors general to investigate whether Trump officials violated ethics rules in multibillion-dollar deals involving UAE entities. The Emiratis pledged $1.4 trillion in US investments over the next decade.
The UAE connection comes as the Gulf state pursues artificial intelligence chip purchases previously restricted under Biden administration policies. Trump’s team approved selling 500,000 AI chips to the Emirates during a May visit to Abu Dhabi.
Next Steps for TikTok Users and Investors
TikTok users can continue using the app normally while negotiations proceed. App stores like Apple and Google won’t face penalties for hosting TikTok during the extended deadline period.
If successful, American investors will gain control of one of the world’s most influential social media platforms at a bargain price. The arrangement could set precedent for other Chinese tech companies facing US national security scrutiny.
The deal lifts uncertainty that has hung over TikTok for years while satisfying lawmakers’ demands for Chinese divestment. Whether $14 billion proves fair value for TikTok’s US business remains hotly debated among Wall Street analysts.
