WASHINGTON – Former President Donald Trump announced Monday a deal is in place to sell TikTok‘s U.S.operations, leading him to postpone enforcement of a law that would have effectively banned the app in the United States. The declaration came during a meeting between U.S. and Chinese officials in Madrid, where China’s top trade negotiator, Li Chenggang, stated the two sides had reached a ”basic framework consensus” to keep TikTok available in the U.S., according to a Reuters report.
The proposed agreement would see 80% ownership of a new TikTok U.S. company held by U.S. investors, with the remaining stake owned by Chinese shareholders including ByteDance, TikTok’s parent company, according to a report in The Wall Street Journal citing anonymous sources. The new entity would be governed by a U.S.-dominated board, including a member designated by the U.S. government.
the move addresses a U.S. law that went into effect January 19, 2025, prohibiting American companies from hosting or distributing TikTok if it remains controlled by ByteDance. The legislation, passed with bipartisan support in Congress, stems from national security concerns regarding the app’s ties to the Chinese government. President Biden signed the bill into law last year.
ByteDance has previously stated its ownership is comprised of 60% global institutional investors – including blackrock, General Atlantic and Susquehanna – 20% by its Chinese founders, and 20% by employees, including those in the U.S. However, the U.S. law prohibits distribution of any app where companies or individuals in a “foreign adversary” country, such as China, “directly or indirectly own” at least a 20% stake.
Under the proposed deal,current U.S. TikTok users would need to download a new, separate app. This U.S. version will utilize a content-advice algorithm licensed from ByteDance, while Oracle will continue to manage and host TikTok’s U.S. data.
Trump initially attempted to ban TikTok during his first term unless its ownership was transferred to U.S. companies. However, following the 2024 election, he expressed a change of heart, stating he “has a warm spot in my heart for TikTok,” citing claims the app helped bolster his support among young voters.
Representatives for TikTok and ByteDance have not yet responded to requests for comment.
