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A deal has been reached between the US and China to keep TikTok operational in the United States, with the arrangement closely resembling discussions from earlier this year. The deal involves transferring TikTok’s American assets from China’s ByteDance to US ownership, potentially ending nearly a year of uncertainty. This agreement is significant as TikTok boasts 170 million users in the US and marks a major step in thawing tensions between the two economic giants, amid ongoing trade disputes that have unsettled global markets.
President Donald Trump announced on Tuesday that an agreement was in place, involving several major companies interested in acquiring TikTok, without disclosing further specifics. The deal comes just before the September 17 deadline to either sell or shut down the app, but later, the White House extended this deadline until December 16. The delay appears to give ByteDance an additional 90 days to finalize the US ownership transfer, indicating the process is complex and requires substantial work.
According to reports from the Wall Street Journal, the US entity will have a board predominantly made up of Americans, with one member appointed by the government. Similar to a recent security agreement, the new structure might include a “Golden Share” or a government-designated board member, providing the US with influence over the company’s operations.
Legally, the deal must be approved by Congress, which passed a law in 2024 requiring TikTok to divest due to concerns that the Chinese government could access US user data or influence its content. Under the proposed terms, ByteDance would retain a 19.9% ownership stake—just below the 20% threshold that triggers certain regulations, according to sources. While the core terms are expected to stay largely the same, some details might change before finalization.
US Treasury Secretary Scott Bessent indicated that the main terms have been essentially settled since March, with only minor details remaining. He emphasized that appropriate safeguards for national security are integral to the deal, suggesting a balance has been struck that meets both US and Chinese interests.
The timeline for closing the deal is roughly 30 to 45 days from now, with current investors in ByteDance and new investors involved in the US operations. In line with earlier reports, the plan involves creating a new US-based company that will control TikTok, with majority US ownership and management.
Major US investors include Susquehanna International Group, General Atlantic, Kohlberg Kravis Roberts, and Sequoia Capital. The Trump administration had previously hesitated to enforce the law strictly, opting instead to extend the deadline multiple times, partly out of concern for TikTok’s large user base and political relevance—Trump himself credits TikTok with helping him secure re-election last year. His personal TikTok account has 15 million followers.
The negotiation process was delayed in the spring when China signaled they would not approve the deal after Trump announced tariffs on Chinese goods. The US has accused ByteDance of being under Chinese government influence, but the company maintains its data centers and content moderation are based in the US, with Oracle handling cloud operations.
Oracle, which was initially expected to oversee TikTok’s US data, is reported to have retained its cloud contract. A framework agreement was achieved earlier this week, with final confirmation anticipated during a call between Trump and Chinese President Xi Jinping this Friday.
Earlier bidders for TikTok included Microsoft, Amazon, and a few billionaire-led groups. The outcome of this deal could have significant implications for international trade, data security, and content regulation.
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