US President Donald Trump on Tuesday announced an agreement between the US and China to keep TikTok operating in the US, with three sources familiar with the matter saying the deal was similar to one discussed earlier this year.

The agreement requires TikTok’s American assets to be transferred to US owners from China’s ByteDance, potentially resolving a saga that has lingered for nearly a year.

A deal for the popular social media app, which counts 170 million US users, would represent a breakthrough in months-long talks between the two biggest economies as they seek to defuse a wide-ranging trade war that has unnerved global markets.

“We have a deal on TikTok… We have a group of very big companies that want to buy it,” Trump said at a White House briefing, without providing further details. The announcement comes a day before a 17 September deadline to sell or shut down the short-video app.

Later in the day, the White House extended that deadline until 16 December. The White House declined to provide any further details on the agreement with China.

The delay will give ByteDance another 90 days to finalise an agreement to transfer TikTok’s American assets to US owners, suggesting much work needs to be done to close the complex transaction. The US entity will have an American-dominated board, the Wall Street Journal reported, with one member designated by the US government.

The idea takes a page from a recent national security agreement inked by the Trump administration that allowed Nippon Steel to buy US Steel after allowing the US to name a board member, in addition to having a golden share.

Shareholding

Any agreement may require approval by the Republican-controlled congress, which passed a law in 2024 during the Biden administration that required TikTok’s divestiture due to fears that its US user data could be accessed by the Chinese government, allowing Beijing to spy on Americans or conduct influence operations through the app.

The basics of the new deal, also similar to April, include that ByteDance will keep the single largest ownership stake at 19.9%, just under a 20% threshold, two of the sources said. The consortium that would hold 80% includes ByteDance’s current shareholders Susquehanna International Group, General Atlantic and KKR, as well as new investors such as Andreessen Horowitz. Oracle is also likely to take a stake, and The Wall Street Journal reported that Silver Lake would invest as well.

Read: Musk is not interested in buying TikTok

While the broad terms are expected to remain the same, the sources did say they do not know what the final deal would exactly look like, given the potential for last-minute changes.

US treasury secretary Scott Bessent told CNBC on Tuesday the commercial terms of the deal had, in essence, been done since around March with just a few details left to be ironed out. “This deal wouldn’t be done without proper safeguards for US national security,” he said. “It seems as though we were also able to meet the Chinese interest.”

CNBC reported on Tuesday that the deal is expected to be closed within the next 30-45 days, and that the agreement will include existing investors in TikTok’s China-based parent, ByteDance, and new investors.

The details are in line with Reuters’ reporting in April that the deal would spin off TikTok’s US operations into a new company based in the US and majority owned and operated by US investors.

The Trump administration has declined to enforce the law due to worries it would anger TikTok’s huge user base and disrupt political communications, instead extending the divestiture deadline on three separate occasions.

Read: Meta created flirty chatbot of Taylor Swift without permission

Trump, who has credited TikTok with helping him win re-election last year and has 15 million followers on his personal account, was expected to extend the deadline for the fourth time. The White House also launched an official TikTok account last month. — Andrea Shalal, Jarrett Renshaw, Deborah Sophia, David Shepardson and Jaspreet Singh, (c) 2025 Reuters

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