In a significant development amidst ongoing U.S.-China trade tensions, President Donald Trump announced a landmark agreement on Tuesday that allows TikTok to continue its operations in the United States. This breakthrough comes after months of negotiations aimed at de-escalating a trade war that has rattled global markets. The deal, reminiscent of earlier discussions this year, mandates the transfer of TikTok’s American assets from China’s ByteDance to U.S. owners, potentially concluding a year-long saga.
President Trump highlighted the interest of several major companies in acquiring TikTok, extending the deadline for the sale or shutdown of the app to December 16. TikTok, boasting approximately 170 million American users, has drawn attention from various potential buyers. The new agreement stipulates that ByteDance will retain a 19.9% stake, just below the 20% threshold, while a consortium including current shareholders Susquehanna International Group, General Atlantic, and KKR will hold the remaining 80%. New investors such as Andreessen Horowitz and Oracle are also expected to participate.
Oracle, with a market value exceeding $871 billion, plays a pivotal role in TikTok’s U.S. operations, providing essential cloud computing services and managing servers hosting American user data. Additionally, investment firm Silver Lake is set to invest under the new deal. Meanwhile, tech giant Amazon, valued at over $2.5 trillion, made a last-minute offer to acquire TikTok’s assets outside of China.
Other notable bids include a late-stage proposal from Tim Stokely, founder of OnlyFans, in partnership with the Hbar Foundation, and a $30 billion all-cash offer from a group led by tech entrepreneur Jesse Tinsley, featuring YouTube personality MrBeast. AI-powered search engine startup Perplexity AI has also proposed acquiring TikTok’s U.S. operations, with plans for the U.S. government to own up to 50% of the new entity upon a future IPO.
Entrepreneur Frank McCourt, with the support of Reddit co-founder Alexis Ohanian, has launched ‘The People’s Bid,’ aiming to acquire TikTok’s U.S. operations and run the app on technology that empowers users to control their data. Microsoft, previously a top bidder in 2020, remains a potential contender, with President Trump expressing a desire for a competitive bidding process.
This agreement marks a critical juncture in the U.S.-China trade relationship, addressing national security concerns while ensuring the continuity of a widely-used social media platform in America.