Agreement Reached with China
President Donald Trump on Tuesday confirmed that his administration has reached an agreement with China to allow TikTok to continue operating in the United States. Three sources familiar with the matter said the deal mirrors one discussed earlier this year, potentially ending months of uncertainty about the app’s future.
Transfer to US Ownership
The arrangement requires TikTok’s American operations to be shifted from China’s ByteDance to U.S. investors. The step could resolve a year-long dispute tied to national security concerns. With 170 million American users, TikTok has been at the heart of political debate between Washington and Beijing.
Deadline Extended for Finalization
At a White House briefing, Trump said, “We have a deal on TikTok … We have a group of very big companies that want to buy it.” While the president initially pointed to a September 17 deadline to sell or shut down the app, the White House later extended that deadline to December 16. The move gives ByteDance an additional 90 days to close the complex transaction.
Structure of the Deal
Sources said the new U.S.-based company would have a board dominated by American members, including one chosen by the U.S. government. The setup is similar to a recent security arrangement for Nippon Steel’s acquisition of U.S. Steel, which gave Washington a “golden share” and board influence. Congress may also need to approve the deal due to a 2024 law requiring TikTok’s divestiture.
ByteDance Stake and New Investors
Under the current terms, ByteDance would hold a 19.9 percent stake, while 80 percent would go to a consortium of investors. Existing shareholders such as Susquehanna International Group, General Atlantic, and KKR would remain involved, while new backers like Andreessen Horowitz, Oracle, and possibly Silver Lake are expected to take part. CNBC reported the deal could be finalized within 30 to 45 days.
National Security Concerns
U.S. Treasury Secretary Scott Bessent said most of the commercial terms were already settled in March, with only minor issues left. He assured that the deal includes safeguards to address national security concerns. ByteDance, for its part, has insisted that U.S. user data is stored on Oracle’s servers and managed in America, pushing back against accusations of Chinese government influence.
Oracle’s Role and Market Impact
Oracle will continue its cloud partnership with TikTok as part of the plan, ensuring oversight of data storage and security. The company’s shares rose 1.5 percent after news of the agreement. The new deal would spin off TikTok’s U.S. operations into a majority American-owned and operated entity, addressing the core concerns of lawmakers.
Political and Diplomatic Context
The negotiations had previously stalled after Beijing objected to Trump’s tariffs on Chinese goods. But officials from both countries confirmed this week that a framework agreement is in place, with a final decision expected after Trump and Chinese President Xi Jinping speak on Friday.
Trump’s Personal Stakes
Trump has been outspoken about TikTok’s role in his political outreach, even crediting the app for helping his re-election. The president himself has 15 million followers on the platform, and the White House launched an official TikTok account last month. Despite national security worries, the administration extended deadlines several times, underscoring TikTok’s growing influence in American politics.
Other Potential Bidders
Microsoft, Amazon, billionaire Frank McCourt, and a consortium led by the founder of OnlyFans were all previously linked to the bidding process. Trump, however, emphasized that the final deal involves a group of “very big companies” committed to buying into TikTok and securing its future in the United States.
