TikTok Won’t Face a US Ban Thanks to New Agreement

It’s official! TikTok has avoided a ban in the US. The US and China have struck a deal that allows the Chinese-origin short-form online video platform to continue operating stateside. This agreement comes just before the September 17 deadline that the US government previously set for a potential ban unless the app was sold to an American entity.

The US government reached a deal with ByteDance

Back in April 2024, the US government passed a law for the TikTok app due to national security concerns for American users. The law said that TikTok’s Chinese-origin parent company, ByteDance, will have to sell its US operations — otherwise, it will face a ban in the United States. The government pushed the deadlines several times, giving the company enough time to arrange a sale.

The recent framework agreement between the US and China has finally solved the situation. Speaking at a White House briefing, President Trump said, “We have a deal on TikTok … We have a group of very big companies that want to buy it,” but he did not provide further details.

However, the White House announced that the Trump administration has extended the deadline to December 16. This means ByteDance now has 90 days to meet the terms of the contract. Under the agreement, a new entity will run TikTok in the United States, where Americans will dominate the board. The report suggests that Oracle, Silver Lake, Andreessen Horowitz, and other investors will hold about an 80% share. There will be one board member from the US government.

The deal between the US government and ByteDance is expected to be completed within the next 30 to 45 days. After the agreement takes effect, users will have to move to a US version of the TikTok app, which is currently in the testing phase. This new app will use ByteDance’s content-recommendation algorithms. Oracle may host servers for the app in the United States.