The United States and China have finalized an arrangement to keep TikTok operating in America after months of uncertainty over its future. President Donald Trump announced at a White House briefing that a group of major US companies will acquire TikTok’s American assets from ByteDance, the Chinese parent company, as part of a transaction aimed at satisfying US national security requirements. The agreement, which comes just before a previously set divestiture deadline, includes a new timeline extending ByteDance’s window to complete the transfer to December 16, giving an additional 90 days to finalize the process. While Trump did not publicly name the investors, officials and media reports indicate the deal reflects terms under discussion earlier in the year.
Under the proposed ownership framework, ByteDance will retain a 19.9 percent minority stake, remaining below the 20 percent limit, while an American-led consortium will control 80 percent of TikTok’s US entity. This group is expected to include current ByteDance shareholders Susquehanna International Group (SIG), General Atlantic, and KKR, alongside new investors such as Andreessen Horowitz, Oracle, and Silver Lake. Oracle is also set to continue its existing cloud partnership with TikTok, ensuring continuity for the platform’s data hosting and infrastructure needs. Reports indicate the new company will have a US-dominated board of directors, with one seat specifically designated by the US government, mirroring oversight structures used in other high-profile cross-border deals such as the Nippon Steel–U.S. Steel arrangement.
The arrangement has its roots in a 2024 law passed under the Biden administration mandating TikTok’s divestiture over national security concerns. Lawmakers raised fears that Beijing could access American user data or exploit the platform for influence operations, prompting a legal and political push for the sale of its US operations. While the law required the app’s ownership to shift to US control, successive administrations have repeatedly extended deadlines rather than shutting TikTok down outright, citing the potential backlash from its 170 million American users. Trump has also developed a high-profile personal presence on the platform, amassing over 15 million followers and crediting TikTok for boosting his political reach, making the negotiations even more closely watched.
Trade tensions between Washington and Beijing initially delayed the talks, particularly after Trump announced new tariffs on Chinese imports, which triggered resistance from Chinese officials. However, the new agreement signals that both sides are willing to treat the platform separately from wider trade disputes. US Treasury Secretary Scott Bessent told CNBC that the commercial terms of the arrangement had been essentially finalized since March, with only technical and governance details pending, and further reported that the deal could be closed within 30 to 45 days. The development reflects an effort to provide continuity for US TikTok users, investors, and advertisers while creating a new ownership model that addresses national security concerns raised by Congress and federal agencies.
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