The deal, confirmed by officials on Tuesday, will see TikTok’s U.S. assets transferred to American ownership, easing long-standing concerns about security, tied to its Chinese parent company, ByteDance.

President Donald Trump, addressing reporters at the White House, said: “We have a deal on TikTok … We have a group of very big companies that want to buy it.” 

He made this statement just a day before the September 17 deadline that could have forced the app, used by 170 million Americans, to shut down. Hours later, the administration extended the deadline until December 16, buying ByteDance 90 more days to finalise the handover.

Under the structure taking shape, ByteDance will hold no more than 19.9% of the new U.S. entity, a level carefully set below the 20% regulatory threshold. The remaining 80% will rest with a consortium of investors that includes Susquehanna International Group (SIG), KKR, General Atlantic, Silver Lake, and new entrants like Andreessen Horowitz. Oracle is also expected to retain its cloud services role with TikTok.

The deal between TikTok and the United States (US) aligns with a model previously applied to the Nippon Steel, U.S. Steel agreement, which allowed Washington to insert a government-appointed board member into the American company.

Sources familiar with the matter say the new TikTok board will also be U.S.-dominated, with one seat designated by the federal government.

Treasury Secretary Scott Bessent told CNBC: “This deal wouldn’t be done without proper safeguards for U.S. national security. It seems as though we were also able to meet the Chinese interest.” He added that the commercial terms had largely been settled since March, but tariff disputes stalled Beijing’s approval.

Yet, some questions are still unresolved. ByteDance’s most prized asset, the recommendation algorithm, may remain under its control through a licensing arrangement, as China’s 2020 export laws classify such technology as sensitive intellectual property. 

Critics in Washington warn that leaving ByteDance with control of the algorithm could still allow Beijing indirect influence over U.S. users, sabotaging the purpose of the 2024 divestiture law passed under the Biden administration.

However, Trump has shown little appetite to enforce an immediate ban. His administration has extended the divestiture deadline four times, noting the risk of alienating TikTok’s massive user base and disrupting political engagement on the platform. Trump himself has 15 million followers on TikTok and has openly acknowledged the app’s role in his re-election bid.

A final confirmation of the framework is expected after a call between Trump and Chinese President Xi Jinping later this week. CNBC reports the agreement could close within 30 to 45 days if no last-minute changes emerge.

China’s state media has described the outcome as a “win-win,” emphasising mutual respect and cooperation. But on Capitol Hill, some lawmakers argue that repeated extensions affect the intent of the divestiture law. Others insist that a measured approach prevents unnecessary disruption for millions of Americans who rely on the app daily.

For now, TikTok remains online in the U.S., shielded by a fragile compromise shaped as much by politics as by national security.

During a Fox News interview on Sunday, Trump announced, “We have a buyer for TikTok, by the way. I think I’ll need probably China’s approval. I think President Xi will probably do it.”

He didn’t give names but insisted the potential buyers are “very wealthy people,” and that their identities will be made public “in about two weeks.”

Trump’s statement comes months after he extended the deadline, again, for TikTok’s Chinese parent company, ByteDance, to sell off the app’s U.S. operations. 

Despite a law signed in 2024 mandating either a sale or a nationwide ban by January 19, 2025, Trump has now postponed enforcement three times, with the latest deadline set for September 17.

This isn’t the first time a deal has come close. A proposal earlier this year would’ve transferred control of TikTok’s U.S. branch to a new American entity with majority U.S. ownership. But the plan derailed after Beijing objected, reportedly in retaliation for Trump’s aggressive trade measures, including a 34% tariff on Chinese imports.

In the same interview, Trump hinted at possible structures for the new deal, including a joint venture model where American stakeholders would hold a 50% stake. He has previously suggested Oracle’s Larry Ellison or Tesla’s Elon Musk could be involved, although Musk appears to be off the table for now.

Still, even with financial backing, there are political limitations. Under Chinese law, TikTok’s recommendation algorithm is classified as a restricted export. Any attempt to sell it abroad would need clearance from the Chinese government, a step that stalled the last deal.

Trump, however, remains confident. “I think President Xi will probably do it,” he said, leaving the impression that personal diplomacy might yet move things forward.

The stakes are high. TikTok has become deeply embedded in the U.S. digital economy. It counts over 170 million American users and serves around 7.5 million small businesses. Ironically, Trump himself benefited from the platform’s youth appeal during the 2024 election campaign and now seems reluctant to see it disappear.

But until a formal agreement is inked, and Beijing signs off, everything stays speculative with time ticking towards September, and all eyes now turn to China’s response.