TikTok’s United States business is to be transferred to a new company valued at about $14 billion, with American and global investors taking majority ownership, under an executive order signed by President Donald Trump, Reuters reported.

Oracle, private equity firm Silver Lake and a group of ByteDance’s existing shareholders, including Susquehanna International Group, General Atlantic and KKR, will together hold around 80% of the new entity. The remainder will be open to a handful of high-profile investors such as Dell Technologies founder Michael Dell and Rupert Murdoch, according to White House officials.

The deal is designed to comply with a 2024 US law requiring Chinese-owned TikTok to divest its American operations or face a nationwide ban. Enforcement of the measure has been pushed back to January 20 to give time for the restructuring to be completed and for Beijing to give its approval.

At the centre of negotiations is TikTok’s algorithm, the recommendation engine driving the app’s popularity. The order states that the algorithm will be retrained in the United States, supervised by security partners, and controlled by the new joint venture.

Vice President JD Vance said the arrangement balances commercial continuity with the need to protect user data. “The fundamental thing we wanted to accomplish is to keep TikTok operating while making sure that we protected Americans’ data privacy,” he told reporters.

Trump added that he had spoken to Chinese President Xi Jinping, who signalled agreement with the plan. Neither the Chinese embassy in Washington nor TikTok commented.

Trump, who credits the platform with helping him win re-election and counts 15 million followers on his own account, said the new structure ensures “this is going to be American-operated all the way.” The White House launched an official TikTok channel last month.