- Deal keeps Tiktok in operation in the US under US-controlled ownership.
- Bytance to keep a single largest ownership interest of 19.9%.
- Deal is expected to close in 30-45 days, reports CNBC.
President Donald Trump on Tuesday announced a US -China deal to hold Tiktok Operation in the United States, with three sources familiar with the case that said the deal was similar to someone discussed earlier this year.
The agreement requires Tikkok’s US assets to be transferred to US owners from China’s city dancing, potentially resolving a saga that has been staying for almost a year.
An agreement for the popular app on social media, which counts 170 million US users, would represent a breakthrough in month -long conversations between the two largest economies as they try to abuse a broad trade war that has nervous global markets.
“We have a deal on Tiktok … We have a group of very large companies who want to buy it,” Trump said at a briefing in the White House without giving further details. The message comes one day before a deadline of September 17 to sell or close the short video app.
Later in the day, the White House extended this deadline until December 16. The White House refused to provide additional information about the agreement with China.
The delay gives by dancing another 90 days to conclude an agreement to transfer Tikkok’s US assets to US owners, suggesting that a lot of work needs to be done to close the complex transaction.
The US unit will have a US-dominated board, the Wall Street Journal reported, with a member appointed by the US government.
The idea takes a page from a recent national security agreement that has been inked by the Trump administration that allowed Nippon Steel to buy us steel after allowing the United States to name a board member in addition to having a golden share.
Any agreement may require the approval of the Republican-Controlled Congress, which passed a law in 2024 under the Biden administration that required Tikkok’s disposal due to fear that its US user data could be accessed by the Chinese government, allowing Beijing to spy on Americans or perform influence operations through the app.
Basic about New Deal, which is similar to April, includes that bytance will keep the largest largest ownership of 19.9%, just below the law’s threshold of 20%, two of the sources say.
While the broad expressions are expected to remain the same, the sources said they do not know what the final agreement would exactly look like in view of the potential of changes at the last minute.
US Treasury Secretary Scott Bessent told CNBC on Tuesday that the commercial conditions for the deal had essentially been done since around March, with only a few details left to be ironed out.
“This agreement would not be done without appropriate protection measures for US national security,” Bessent said. “It seems that we were also able to meet the Chinese interest.”
CNBC reported on Tuesday that the agreement is expected to be closed within the next 30 to 45 days and that the agreement will include existing investors in Tikkok’s China-based parent, city dancing and new investors.
The details are in line with Reuters’ reporting in April that the agreement would turn Tikkok’s US operations into a new company based in the US and majority -owned and run by US investors.
Jeff Yass’ Susquehanna International Group, General Atlantic, Kohlberg Kravis Roberts and Sequoia Capital are among Bytedan’s American backers.
The Trump administration has refused to enforce the law due to concerns that it would anger Tikkok’s huge user base and interfere with political communication, rather than expanding the disposal deadline on three separate occasions.
Trump, who has credited Tiktok with helping him win re -election last year and has 15 million followers in his personal account, was expected to extend the deadline for the fourth time. The White House also launched an official Tiktok account last month.
Tariffs and Tiktok
An agreement for Tiktok, who had been in the works in the spring, was put on wait after China indicated that it would not approve it after Trump’s messages on tariffs on Chinese goods.
Washington has said that Tikkoks ownership of bytedance makes it see the Chinese government.
But the company has said that US officials mistakenly have their ties to China and argued that its content recommendation engine and user data are stored in the US on Sky servers driven by Oracle, while content moderation decisions affecting US users are also taken in the US
CNBC reported on Tuesday that Oracle will hold his cloud deal with Tiktok. Reuters Reported earlier this year that the White House was working on a plan to tap Oracle with a group of external investors to check the app’s operations.
As part of the plan, Oracle would have been responsible for tackling national security questions, Reuters had reported.
Oracle shares paired some winnings on Tuesday after the news and last increased by 1%.
A framework agreement was obtained by officials from both countries on Monday. A final confirmation of the deal is expected Friday in a call between Trump and Chinese President Xi Jinping.
Trump said in March that his administration was in contact with four different groups about Tikkok’s sales. Microsoft, Amazon, billionaire Frank McCourt and a consortium led by the founder of Onlyfans have been among the bidders, according to reports.
