Washington: President Donald Trump on Tuesday confirmed that an agreement has been reached to keep TikTok operating in the United States, with sources saying the deal closely mirrors one discussed earlier this year.
Under the arrangement, TikTok’s American assets would be shifted to US ownership from China’s ByteDance, potentially ending months of uncertainty surrounding the app’s future. The decision marks a significant moment in US-China relations, as both countries seek to ease tensions from an ongoing trade war that has rattled global markets.
“We have a deal on TikTok … We have a group of very big companies that want to buy it,” Trump announced at a White House briefing, though he declined to provide details. The announcement came a day before a September 17 deadline for ByteDance to either sell TikTok or face a shutdown in the US. Hours later, the White House extended the deadline until December 16, giving ByteDance 90 more days to finalize the transfer.
The Wall Street Journal reported that the new US-based entity would have an American-dominated board, with one seat appointed by the government. The model resembles a national security arrangement approved earlier by the Trump administration in a separate corporate deal.
Congressional approval may still be needed, as a law passed in 2024 required TikTok’s divestiture over fears that the Chinese government could exploit user data. Under the proposed structure, ByteDance would retain a 19.9% stake, while an investor consortium — including Susquehanna International Group, General Atlantic, KKR, Andreessen Horowitz, Oracle, and Silver Lake — would hold the majority.
US Treasury Secretary Scott Bessent told CNBC that most of the commercial terms had been agreed since March, with only final details pending. “This deal wouldn’t be done without proper safeguards for US national security,” he said, adding that Chinese concerns were also accommodated.
Reports suggest the deal could close within 30 to 45 days. It would spin off TikTok’s US operations into a separate company, majority-owned by American investors but still tied to ByteDance through a minority shareholding. Oracle will continue providing cloud services to TikTok, ensuring that US user data remains stored domestically.
The Trump administration has repeatedly extended deadlines for TikTok’s divestiture, wary of alienating the app’s 170 million US users. Trump himself has credited the platform with boosting his re-election campaign, where he commands an audience of 15 million followers.
The deal had stalled earlier this year after Beijing pushed back against Trump’s imposition of new tariffs on Chinese goods. While Washington insists ByteDance’s ownership makes TikTok vulnerable to Chinese state influence, the company maintains that US user data and content moderation are already managed within the country.
Markets responded positively, with Oracle’s stock rising 1.5% after reports of its continued role in the agreement. Final confirmation of the deal is expected later this week following a scheduled call between Trump and Chinese President Xi Jinping.
