President Donald Trump has signed an executive order approving the creation of a $14bn US-based TikTok entity, bringing in major investors including Oracle, Silver Lake, and existing ByteDance shareholders such as KKR and General Atlantic, Reuters reports.

The restructuring, which satisfies the requirements of a 2024 law mandating the divestment of TikTok’s US operations, will see ByteDance retain less than 20% of the new entity. Oracle and Silver Lake are expected to hold about 50%, while other investors including Susquehanna International Group will also participate. Trump named Michael Dell and Rupert Murdoch among additional high-profile backers.

“This is going to be American-operated all the way,” Trump said, adding that Chinese President Xi Jinping had agreed to the arrangement. However, Chinese media suggested ByteDance may continue to play a role in operations, raising questions about the extent of separation.

TikTok’s US spin-off comes amid heightened scrutiny of data privacy and national security concerns. The app, with 170m American users, has been credited by Trump as pivotal in his re-election campaign. Analysts at Wedbush previously estimated TikTok’s US arm could be worth $30bn–$40bn without the algorithm, far higher than the White House’s $14bn valuation.

The new entity’s board will have seven members, with six Americans and one appointed by ByteDance. The recommendation algorithm will be retrained under US oversight.

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