President Trump extended the deadline Tuesday for TikTok’s forced divestment, preparing for a US-China agreement that would keep the app accessible to 170 million American users.
The deal under discussion would create a new US-based entity controlling TikTok, with an investor consortium led by Oracle, Silver Lake and Andreessen Horowitz, alongside existing ByteDance backers Susquehanna International, KKR and General Atlantic. American investors would hold an 80 percent stake, while Chinese shareholders retain just under 20 percent.
Negotiations in Madrid produced the framework, with Oracle designated to manage US user data at facilities in Texas and a board dominated by Americans, including one seat appointed by the US government. As part of the plan, Chinese developers would allow US engineers to build a replacement app using licensed ByteDance technology, recreating content algorithms for American users. Beijing’s cyberspace regulator said a “basic consensus” had been reached, with deputy director Wang Jingtao confirming China’s openness to licensing TikTok’s algorithm and other intellectual property.
Skepticism remains among US officials and lawmakers who argue that any structure reliant on ByteDance’s technology poses national security risks. A final agreement is expected to hinge on Trump’s call with Xi on Friday, as both sides weigh broader trade tensions and the possibility of a later Trump-Xi meeting in Beijing.
