TikTok, owned by China’s ByteDance, has been facing a potential U.S. ban due to national security concerns under the 2024 TikTok Ban Act, requiring ByteDance to divest U.S. operations by January 19, 2025. After the Supreme Court upheld the law, President Trump delayed enforcement through executive orders, citing negotiations to protect the app’s 170 million U.S. users.
Following intense U.S.-China talks, including a September 19, 2025, call between Trump and Xi Jinping, a deal was framed to create a U.S.-controlled joint venture with ByteDance holding under 20% stake. Trump is set to sign the deal on Thursday, September 25, 2025, ensuring compliance with the law, with U.S. investors like Oracle and Silver Lake taking majority control, securing data and the algorithm. The deadline extends to December 16, 2025, for finalization.
The agreement structures TikTok's U.S. operations as a new joint venture company, ensuring majority American control to comply with the 2024 law. Here's a breakdown:
President Trump is scheduled to sign an executive order on Thursday declaring the deal compliant with the 2024 law, effectively greenlighting the divestiture.
A White House official confirmed this to multiple outlets, noting it's a "formality" after weeks of negotiations. Trump teased the announcement on Sunday, saying the deal is "well on its way" and investors are "getting ready." The signing will occur amid broader U.S.-China talks, including an upcoming in-person meeting between Trump and Xi at the Asia-Pacific Economic Cooperation forum in South Korea starting October 31.
Trump administration officials hail it as a national security win, securing data and algorithm control while keeping the app alive—potentially boosting his appeal among Gen Z users. ByteDance thanked the leaders for "preserving TikTok in the United States."