TikTok Deal Likely Delayed by At Least One Month Amid Ongoing US‑China Talks
Key Points
- TikTok’s U.S. sale likely delayed by at least one month.
- US‑China negotiations may close within the next 30 to 45 days.
- Treasury Secretary confirms a framework agreement.
- Oracle remains TikTok’s cloud partner for U.S. data.
- Deal may involve licensing of TikTok’s algorithms and IP.
- A group of investment firms could take control of U.S. operations.
- President indicates interest from major companies.
- Transaction size expected to be modest and not public.
Sources indicate that TikTok’s sale of its U.S. operations will not be completed for at least another month, as negotiations between the United States and China continue. The Treasury Secretary confirmed a framework agreement, while Oracle remains the app’s cloud partner. The deal, which could be finalized within the next 30 to 45 days, may involve a group of investment firms taking control, but details on size and public disclosure remain unclear.
Background
TikTok’s future in the United States has been uncertain since the federal government enacted the Protecting Americans from Foreign Adversary Controlled Applications Act. The law requires the platform to divest from its Chinese parent, ByteDance, or face a ban due to national‑security concerns. TikTok has already received three extensions to negotiate a solution.
Current Negotiations
According to sources, the United States and China are working toward a definitive agreement that could be reached within the next 30 to 45 days. Treasury Secretary Scott Bessent announced that a “framework deal” has been reached, and the President is expected to confirm the arrangement. Oracle will continue as TikTok’s cloud partner, ensuring that U.S. user data remains on American servers.
Reports suggest that the agreement may include licensing TikTok’s algorithms and other intellectual‑property rights to U.S. entities. A consortium of investment firms, some of which already hold stakes in ByteDance, could assume control of TikTok’s U.S. operations. President Trump has indicated that “a group of very big companies” are interested in purchasing the platform.
Potential Outcomes
While the deal is moving forward, its exact financial scale remains uncertain. Sources describe the transaction as relatively modest in size and not likely to become a public offering. If finalized, the arrangement would satisfy the legal requirement to separate TikTok from its Chinese ownership while preserving the app’s functionality for American users.
The ongoing negotiations reflect a delicate balance between national‑security objectives and the commercial interests of a globally popular social‑media platform. The next few weeks will be critical in determining whether the framework agreement solidifies into a binding deal that allows TikTok to continue operating in the United States.