TikTok to Stay in US as Trump Announces Landmark Deal with China

President Donald Trump confirmed on Tuesday that a deal has been reached to keep TikTok operating in the United States, with its American assets set to transfer from China’s ByteDance to US ownership.

The announcement ends months of uncertainty surrounding the app, which has more than 170 million American users and was facing the threat of a nationwide ban over national security concerns.

“We have a deal on TikTok … We have a group of very big companies that want to buy it,” Trump said, adding that the agreement would safeguard billions in value. He also emphasized its popularity among younger users, remarking, “The kids want it so badly, I have parents calling me up. They don’t want it for themselves. They want it for their kids.”

The deal comes after prolonged US-China negotiations aimed at easing trade tensions. Reports suggest the agreement will spin off TikTok’s US operations into a new entity, majority-owned by American investors, while Oracle will continue providing cloud services. CNBC noted the transaction is expected to close within 30 to 45 days.

Congress may still need to approve the arrangement under laws passed in 2024 requiring ByteDance’s divestiture. Washington has argued that Chinese ownership poses risks of surveillance and influence campaigns, allegations TikTok denies, stating its US data is stored domestically on Oracle servers.

Analysts estimate TikTok’s value at nearly $50 billion, with several US investors, including Oracle, among the key players. A final confirmation is expected later this week in a call between Trump and Chinese President Xi Jinping.