The Wall Street Journal reports that the United States and China have entered the final stages of an agreement under which TikTok’s U.S. operations will come under majority American control. According to the arrangement, U.S. investors will hold roughly 80% of the equity, while Chinese shareholders will retain less than 20%. The U.S. government will also be granted the authority to appoint a director to TikTok’s governance structure, ensuring a firmly “U.S.-led” operational direction.
The report notes that American stakeholders include Oracle, TikTok’s longtime partner; Andreessen Horowitz (a16z), a prominent Silicon Valley venture capital firm; and private equity firm Silver Lake. Oracle will continue to oversee TikTok’s U.S. user data, ensuring that all information is stored domestically and handled in compliance with American privacy regulations.
In addition, TikTok will launch a new U.S.-specific app, with its algorithm rebuilt by engineers under technology licensed from ByteDance. This means the core algorithmic technology will remain rooted in China’s intellectual property, yet the U.S. version will operate under independent data governance and compliance frameworks.
President Donald Trump remarked as early as June that the TikTok deal could be finalized “within about two weeks,” though the negotiations have undergone multiple delays. He is expected to further extend the ban deadline and has indicated plans to speak directly with Chinese President Xi Jinping to confirm the final details.
This marks the fourth extension of TikTok’s looming ban, underscoring that while a consensus on TikTok’s U.S. presence is near, critical legal, commercial, and technical matters still require resolution. If successfully concluded, the agreement would spare TikTok from being banned in the American market, allowing its users to transition seamlessly to the new app.
With an estimated 170 million active users in the United States, TikTok remains one of the fastest-growing social platforms worldwide. This deal is not only a significant breakthrough in U.S.–China tech relations, but also a potential precedent for how multinational technology companies handle data governance, algorithm licensing, and equity distribution in the future.
For Washington, the agreement secures national security and data privacy. For ByteDance, it preserves access to a vital market, shielding the company from a forced divestiture or outright exit from the U.S. stage.