The United States and China have reached a deal for TikTok to continue operating in the U.S., President Donald Trump said.
A new company will reportedly be formed to manage TikTok’s U.S. operations, with U.S. investors owning an 80% stake. Trump has also signed an executive order delaying the enforcement of the TikTok ban for a fourth time.
“We have a deal on TikTok, I've reached a deal with China, I'm going to speak to President Xi on Friday to confirm everything up,” Trump said.
The new entity operating TikTok’s U.S. business will be controlled by a consortium including Oracle, Andreessen Horowitz, and Silver Lake, per the Wall Street Journal.
TikTok’s Chinese parent company, ByteDance, will hold a roughly 20% stake in the company, and one board member will be chosen by the U.S. government.
U.S. TikTok users will change to a new app, which is reportedly being tested by TikTok. This app will include a recreated version of TikTok’s flagship algorithm, licensed from ByteDance.
The deal is set to close in 30 to 45 days, CNBC reported. The fourth delay in the TikTok ban’s enforcement will expire on 16 December.
Oracle, a current TikTok cloud partner, would continue to handle all U.S. users’ data.
A U.S. law to ban TikTok was passed in 2024, citing the Chinese government’s ability to potentially monitor U.S. users’ data. Trump has signed a series of orders to delay the ban’s enforcement since taking office in January.
TikTok has about 170 million U.S. users. ByteDance was valued at around US$315 billion in an August share buyback plan.
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