A deal has been reached between US and Chinese negotiators regarding the future of TikTok in the US. The video platform’s ownership will be transferred to a consortium of American investors, according to reports, in a bid to avoid a nationwide ban. US Treasury Secretary Scott Bessent, who led the US delegation in talks with China held in Spain, announced that commercial terms had been agreed upon by both parties.
The agreement comes after months of negotiations between the two countries. TikTok, owned by Chinese tech firm ByteDance, has been under a de facto nationwide US ban since January 19, 2025, due to concerns over user data security. The US government had claimed that the Chinese government could access user data, potentially allowing it to spy on Americans or conduct influence operations through the app.
The ban was initially set to take effect in 2024 but was postponed several times by US President Donald Trump to allow for negotiations with China. The latest deadline was set to expire on September 17, 2025. According to Bessent, the deal is expected to be confirmed by Trump and Chinese leader Xi Jinping after a call on Friday, and TikTok will have 90 more days to finalize the agreement.
Details of the deal are still scarce, but a Wall Street Journal report citing a White House official suggests that a consortium of investors will take an ownership stake in TikTok. US private-equity firm Blackstone, which was previously reported to be a contender, is no longer part of the arrangement. Other companies, such as Oracle and Microsoft, had also been mentioned as possible participants, but neither has confirmed involvement.
The transfer of ownership is seen as a way to address US concerns over data security and ensure the continued operation of TikTok in the country. The platform has been hosted on Oracle’s servers in the US since 2022, and the company has been working to ensure the security of user data. The deal is significant, as it will allow TikTok to continue operating in the US and avoid a ban that could have had major implications for the company and its users.
The agreement marks a significant development in the ongoing saga surrounding TikTok’s future in the US. With the deal expected to be finalized in the coming weeks, users of the platform can breathe a sigh of relief, and the company can continue to operate in one of its largest markets. The outcome of the negotiations will also be closely watched by other companies operating in the US, as it sets a precedent for how data security concerns will be addressed in the future.
