- Deal keeps Tiktok operating in the United States under the property controlled by the United States.
- Bytedance to maintain a larger property participation in 19.9%.
- The agreement is expected to be closed in 30-45 days, CNBC reports.
President Donald Trump announced an agreement between the United States and China on Tuesday to keep Tiktok operating in the United States, with three sources familiar with the matter by saying that the agreement was similar to one discussed earlier this year.
The agreement requires that Tiktok’s US assets transfer to the American owners of China’s byteado, potentially solving a saga that has remained for almost a year.
An agreement for the popular application of social networks, which has 170 million US users, would represent an advance in the conversations of months between the two largest economies while seeking to deactivate a broad commercial war that has worried global markets.
“We have an agreement on Tiktok … We have a group of very large companies that want to buy it,” Trump said at a White House conference, without providing more details. The announcement occurs one day before a deadline of September 17 to sell or close the short video application.
Later in the day, the White House extended that deadline until December 16. The White House refused to provide more details about the agreement with China.
The delay will give 90 -day owners to finish an agreement to transfer Tiktok US assets to US owners, suggesting that a lot of work should be done to close the complex transaction.
The US entity will have a board dominated by Americans, the Wall Street Journal reported, with a member designated by the United States government.
The idea takes a page from a recent national security agreement signed by the Trump administration that allowed Nippon Steel to buy American steel after allowing the United States to appoint a member of the Board, in addition to having a golden action.
Any agreement may require the approval of the Congress controlled by the Republicans, which approved a law in 2024 during the Biden Administration that required Tiktok’s disinvestment due to the fear that the Chinese government can access their US users data.
The basic concepts of the New Deal, also similar to April, include that the Bytedance will maintain the largest property participation of 19.9%, just under the threshold of 20% of the law, two of the sources said.
While the general terms are expected to remain the same, the sources said they do not know what the final agreement would be like, given the potential of the last minute changes.
The Secretary of the United States Treasury, Scott Besent, told CNBC on Tuesday that the commercial terms of the agreement had been made, in essence, from around March, with only a few details that remained to be resolved.
“This agreement would not be made without the appropriate safeguards for the national security of the United States,” Bessent said. “It seems that we could also fulfill Chinese interest.”
CNBC reported on Tuesday that the agreement is expected to be closed within the next 30 to 45 days, and that the agreement will include existing investors in the main investors, Bytedance and new investors based in China.
The details are in line with the Reuters reports in April that the agreement would turn the American Tiktok operations in a new company based in the USA. UU. And most of the United States investors.
Jeff Yass’s Susquehanna International Group, Atlantic General, Kohlberg Kravis Roberts and Capital Sequoia are among the American sponsors of Bytedance.
The Trump administration has refused to enforce the law due to the concerns that it would anger the huge Tiktok user base and interrupt political communications, instead of extending the deadline for divestment on three separate occasions.
Trump was expected, who has accredited Tiktok for helping him win the re -election last year and has 15 million followers in his personal account, extended the deadline for the fourth time. The White House also launched an official Tiktok account last month.
Tariffs and Tiktok
An agreement for Tiktok, which had been in process in spring, was suspended after China indicated that it would not approve it after Trump’s tariff ads about Chinese products.
Washington has said that Tiktok’s property by Byteedance does so according to the Chinese government.
But the company has said that US officials have mistakenly established their ties with China, arguing that their content recommendation engine and user data are stored on the US servers. UU. In the servers in the cloud operated by Oracle, while content moderation decisions that affect US users are also taken in the US.
CNBC reported on Tuesday that Oracle will keep your agreement in the cloud with Tiktok. Reuters He reported earlier this year that the White House was working on a plan to take advantage of Oracle, along with a group of external investors, to control application operations.
As part of the plan, Oracle would have been responsible for addressing national security problems, Reuters reported.
Oracle’s actions reduced some profits on Tuesday after the news and had 1%higher.
The officials of both countries reached a framework agreement on Monday. On Friday a final confirmation is expected in the agreement in a call between Trump and Chinese President Xi Jinping.
Trump said in March that his administration was in contact with four different groups in the sale of Tiktok. Microsoft, Amazon, billionaire Frank McCourt and a consortium led by Onlyfans founder have been among the bidders, according to reports.
