The United States and China have reached a framework agreement allowing TikTok to continue operating in the U.S. under a new 80 percent American-controlled ownership.
President Donald J Trump announced the deal during a White House briefing on Tuesday, September 16, extending the divestiture deadline for ByteDance, TikTok’s Chinese parent company, and paving the way for a consortium of U.S. investors (Oracle + Silver Lake + A16z + legacy investors) to take control of the platform’s American assets. Â The exact value of the deal has yet to be disclosed.
“Thanks to his tough negotiating, a framework for a deal is in place, and China is coming to the table,” said Treasury Secretary Scott Bessent.
President Trump and Chinese President Xi Jinping are scheduled to discuss the terms of the deal during a phone call on Friday,
The deal comes as TikTok faces mounting pressure from U.S. lawmakers over national security risks, including fears that the Chinese government could access user data for espionage or influence campaigns. A 2024 law signed by former President Joe Biden required ByteDance to sell TikTok’s U.S. operations to an approved American buyer within nine months or face a nationwide ban. With the original deadline looming on September 17, the new deal extends that timeline to December 16, providing ByteDance an additional 90 days to finalize the transfer.
Approximately 80% of TikTok’s U.S. business will be owned by American investors, including tech giant Oracle, private equity firm Silver Lake, and venture capital powerhouse Andreessen Horowitz. Existing ByteDance investors such as Jeff Yass’ Susquehanna International Group, General Atlantic, Kohlberg Kravis Roberts (KKR), and Sequoia Capital are also involved in the buyout. ByteDance will retain a minority stake of 19.9%, just below the 20% threshold mandated by U.S. regulations to ensure American control.
The new U.S. entity will feature an American-dominated board of directors. Oracle will continue its role as TikTok’s cloud computing provider, ensuring that U.S. user data is stored domestically and shielded from foreign access.
For TikTok’s estimated 170 million U.S. users, they will need to download a new app that looks identical to current TikTok but runs entirely on American infrastructure with US-controlled algorithms. ByteDance will license their technology but lose operational control.
Author: Mario Lotmore
