WASHINGTON: President Donald Trump announced on Tuesday that a deal has been struck to keep TikTok operating in the United States, with its American assets set to transfer from China’s ByteDance to US owners.
The agreement marks a major breakthrough in months of tense negotiations between Washington and Beijing, which have sought to ease a prolonged trade standoff that has rattled global markets.
TikTok, with more than 170 million users in the US, had faced the prospect of a ban unless its ownership structure was altered to address security concerns raised by the US government.
“We have a deal on TikTok … We have a group of very big companies that want to buy it,” Trump said, without providing further details.
He lauded the trade deal reached with China, calling it an upgrade for both countries, and said it would preserve tens of billions of dollars of value.
“The kids want it so badly, I have parents calling me up. They don’t want it for themselves. They want it for their kids,” Trump said.
Any agreement could require approval by the Republican-controlled Congress, which passed a law in 2024 during the Biden Administration that required divestiture due to fears that TikTok’s US user data could be accessed by the Chinese government, allowing Beijing to spy on Americans or conduct influence operations through the app.
I’ve just signed the Executive Order extending the Deadline for the TikTok closing for 90 days (September 17, 2025). Thank you for your attention to this matter! (TS: 19 Jun 15:23 UTC) pic.twitter.com/dTelAuz8yQ
— Trump Truth Social Posts On X (@TrumpTruthOnX) June 19, 2025
The Trump administration has repeatedly declined to enforce a law requiring the app to shut down due to worries it would anger users and disrupt political communications, instead extending the divestiture deadline on three separate occasions.
Trump has credited the app with helping him win re-election last year, and his personal account has 15 million followers. The White House launched an official TikTok account last month.
CNBC reported Tuesday that the deal is expected to be closed within the next 30 to 45 days, and that the agreement will include existing investors in TikTok’s China-based parent ByteDance and new investors.
Reuters has not independently verified CNBC’s report. However, the details are in line with Reuters’ reporting in April that the deal would spin off TikTok’s US operations into a new company based in the US and majority-owned and operated by US investors.
TARIFFS AND TIKTOK
A deal for TikTok had been in the works in the spring, but was put on hold after China indicated it would not approve it following Trump’s announcements of steep tariffs on Chinese goods.
Washington has maintained that TikTok’s ownership by ByteDance makes it beholden to the Chinese government and Beijing could use the app to collect data on Americans.
The company has said US officials have misstated its ties to China, arguing its content recommendation engine and user data are stored in the US on cloud servers operated by Oracle while content moderation decisions that affect American users are also made in the US
CNBC also reported on Tuesday that Oracle will keep its cloud deal with TikTok as part of the agreement. Reuters reported earlier this year that the White House was working on a plan to tap Oracle along with a group of outside investors to take control of the app’s operations.
As part of the plan, Oracle would have been responsible for addressing national security issues, Reuters had then reported.
Shares of Oracle pared some gains on Tuesday following the news on TikTok and were last up nearly 3%.
A framework agreement was reached by officials from both countries on Monday, marking a breakthrough after months of intense talks. The White House has been involved to an unprecedented level in the closely watched deal talks.
Amid escalating trade tensions, US and China delegations discussed the divestment as part of broader disputes over tariffs and tech export control regulations.
A final confirmation on the deal is expected on Friday in a call between Trump and President Xi Jinping.
Several suitors including former Los Angeles Dodgers owner Frank McCourt, a startup run by OnlyFans founder and Amazon had expressed interest in the fast-growing business that analysts estimate could be worth as much as $50 billion.