U.S. President Donald Trump has announced that an agreement has been reached with China to allow TikTok to continue operating in the United States. Speaking to reporters before leaving the White House for a state visit to the United Kingdom, Trump said, “We have reached a deal with China regarding TikTok. I will speak with President Xi on Friday to finalize it.”
The report, published by the BBC on Wednesday (September 17), follows months of uncertainty over the fate of the Chinese-owned platform. TikTok, operated by ByteDance, had earlier been ordered to either sell its U.S. operations or risk being shut down. Despite issuing multiple deadlines since January, Trump extended the most recent deadline again on Tuesday, giving TikTok until December 16. He also hinted that the name of a new buyer would be announced soon.
According to The Wall Street Journal, as part of the negotiations, TikTok’s U.S. division will be owned by an investor consortium, which will include Oracle, private equity firm Silver Lake, and venture capital firm Andreessen Horowitz. Sources familiar with the matter said a new American entity will be formed, with about 80% of its ownership in the hands of U.S. investors. The board will be dominated by Americans, and one member will be appointed by the U.S. government.
A new app designed specifically for U.S. users is also being developed and is currently in the testing phase. The app will use content-recommendation algorithms licensed from ByteDance, which remain central to TikTok’s global success.
CNBC earlier reported that the deal would combine both current and new investors, with completion expected within 30 to 45 days. Oracle will continue hosting TikTok’s servers in the U.S., addressing lawmakers’ key concern about potential data-sharing with China.
Meanwhile, the U.S. Trade Representative’s Office announced Monday that Washington and Beijing had reached a “structural” trade agreement during broader negotiations in Madrid. However, China stressed it would not compromise the interests of its companies.
Commenting on the agreement, Wang Jingtao, deputy head of China’s Cyberspace Administration, confirmed that the deal includes provisions for the use of algorithms and intellectual property. He added that the Chinese government will review and approve TikTok-related issues in accordance with its laws.
