• Trump announced a consortium including Oracle will buy TikTok’s U.S. arm, addressing Congress’s national security concerns.

• ByteDance’s stake would fall below 20% under the proposed structure.

• Final deal hinges on licensing TikTok’s algorithm, with Beijing resisting full transfer.

Former U.S. President Donald Trump said the United States and China reached an agreement to transfer TikTok’s U.S. operations to a group of American investors.

“We have a deal on TikTok […] We have a group of very big companies that want to buy it,” Trump told reporters on September 16, without giving details. His remarks came during broader trade talks in Madrid covering tariffs and technology restrictions.

According to the Wall Street Journal, the buying consortium includes Oracle, already a partner hosting TikTok’s data, alongside private equity firms Silver Lake and Andreessen Horowitz. Bloomberg reported ByteDance’s stake would drop below 20% under the deal.

The structure responds to a 2024 U.S. law requiring ByteDance to divest from TikTok’s U.S. business or face a nationwide ban. Congress cited national security concerns over possible Chinese access to user data.

ByteDance and TikTok have consistently denied sharing data with Beijing, insisting U.S. information is stored locally and secured by Oracle. However, TikTok admitted some China-based employees accessed U.S. data, though it said none was shared with Chinese authorities.

A sticking point remains TikTok’s recommendation algorithm. Beijing has indicated it will only license the technology rather than allow outright transfer.

Signaling flexibility, Trump extended the U.S. ban deadline for TikTok to December 16 from January 19. He said the extension would allow time to finalize the agreement.

Trump, whose personal TikTok account has 15 million followers, added he expects to confirm details during a scheduled call with Chinese President Xi Jinping on September 19.

This article was initially published in French by Servan Ahougnon

Adapted in English by Ange Jason Quenum