Trump Delays TikTok Ban Again, Claims Deal With China to Sell US Operations
▼ Summary
– President Trump announced a deal to restructure TikTok’s U.S. ownership, delaying enforcement of the divest-or-ban law by 90 days to December 16.
– The proposed deal involves an 80% ownership stake for a U.S.-led investor consortium including Oracle, Silver Lake, and Andreessen Horowitz, with Chinese shareholders retaining the remainder.
– U.S. and Chinese officials have reached a “basic framework consensus” to keep TikTok available in the U.S. under a new ownership structure that complies with American law.
– The restructuring will require U.S. users to download a new, separate app with a content algorithm licensed from ByteDance and U.S. data managed by Oracle.
– The divest-or-ban law prohibits TikTok’s distribution in the U.S. if Chinese entities own at least 20%, due to national security concerns about its ties to China.
The future of TikTok in the United States appears to be taking shape as President Donald Trump announced a tentative agreement with China that would restructure the app’s ownership and operations stateside. Speaking to reporters outside the White House, Trump confirmed ongoing negotiations and expressed confidence that a final arrangement would soon be in place, noting he plans to speak with Chinese President Xi Jinping to finalize terms.
As a result of these ongoing discussions, the Trump administration has once again postponed enforcement of the divest-or-ban mandate, marking the fourth such extension. The new deadline now stands at December 16, pushing the previous September 17 cutoff by an additional 90 days.
While specific details remain undisclosed, reports indicate that a consortium of U.S.-based investors, including Oracle, Silver Lake, and Andreessen Horowitz, would collectively hold an 80% stake in TikTok’s U.S. operations. Current ByteDance investors such as Susquehanna International, KKR, and General Atlantic are also expected to participate in this ownership group. Chinese shareholders, including ByteDance itself, would retain the remaining 20%. The newly formed entity would operate under a U.S.-dominated board, with one seat reportedly reserved for a government-appointed member.
This development follows trade discussions between U.S. and Chinese officials, where China’s lead trade negotiator described a “basic framework consensus” aimed at keeping TikTok accessible to American users. Neither TikTok nor ByteDance has publicly commented on these recent reports.
The urgency behind these negotiations stems from federal legislation that prohibits U.S. companies from distributing TikTok so long as it remains under the control of ByteDance, its Chinese parent company. The law, which received broad bipartisan support, cites national security concerns related to the app’s connections to the Chinese government. It was signed by President Biden and is scheduled to take effect in January 2025.
Under the proposed ownership model, American TikTok users would need to download a new, standalone app completely separate from the global version. While the U.S. app would license its content-recommendation algorithm from ByteDance, user data would be managed and hosted by Oracle, ensuring compliance with U.S. data security requirements.
This is not the first time TikTok has faced a potential U.S. ban. During his previous term, President Trump attempted to force a sale of the app’s U.S. operations, though those efforts were ultimately unsuccessful. More recently, Trump has expressed a more favorable view of the platform, suggesting it played a role in mobilizing young voters during the 2024 election cycle.
(Source: Variety)
