In a major turn of events, President Donald Trump announced on Tuesday that a deal has been reached to keep TikTok operational in the United States. According to Trump in a White House briefing , “We have a deal on TikTok … We have a group of very big companies that want to buy it.”
The Chinese-owned app, which has faced intense scrutiny over national security and data privacy, will now shift part of its US operations under American control.
The Background
Washington has long raised concerns about TikTok’s ownership structure and the risk of Chinese government access to user data. ByteDance, the app’s parent company, has maintained that US data is already stored domestically with Oracle’s cloud infrastructure.
In April 2025, Trump issued an executive order granting TikTok a second 75-day extension, delaying a previously scheduled ban and allowing more time to secure a U.S.-based ownership deal.
The announcement comes just ahead of a critical deadline, September 17, with Trump and Chinese President Xi Jinping set to discuss the agreement on Friday. The White House has extended that deadline until December 16. The extension grants ByteDance an additional 90 days to complete a deal transferring TikTok’s U.S. assets to American owners, underscoring the complexity of the transaction still ahead.
Deal Structure
According to Trump, the framework transfers TikTok’s US assets to American investors. A US-led ownership group is expected to take charge, with Oracle executive chairman Larry Ellison emerging as a key figure due to Oracle’s role in hosting TikTok’s US data since 2020.
Key features of the agreement include:
- Algorithm Usage: TikTok’s US version will retain the Chinese algorithm, but American investors will oversee its use.
- US Ownership: Majority control of TikTok’s US business will shift to American stakeholders.
- Data Security: Stricter oversight will be introduced for US user data, managed by American partners.
Why It Matters
- For Users: Relief for TikTok’s 170 million American users, who had been facing the prospect of a ban.
- For Trade: The deal signals a cautious easing of tensions between Washington and Beijing.
- For Social Media: TikTok remains a major player in the global short-form video market, with an estimated valuation of up to $50 billion.
The Players
Beyond Oracle, other suitors had shown interest, including former LA Dodgers owner Frank McCourt and a startup led by the founder of OnlyFans.
What’s Next
The agreement still needs final sign-off during Trump-Xi talks and must pass US regulatory scrutiny. Lawmakers are expected to closely monitor the final terms, particularly around algorithm oversight and data security.
For now, TikTok’s future in the US looks secure — a reprieve in a saga that has stretched for nearly a year and reshaped the conversation about national security in tech.
