WASHINGTON, D.C. – The White House is reportedly close to approving a deal that would see US investors take control of TikTok’s US operations, separating it from its Chinese parent company, ByteDance.
According to a report by the Financial Times, US President Donald Trump’s officials are set to meet on Thursday (IST) to discuss negotiations regarding the new ownership of TikTok’s US division. If Trump gives his final approval, the deal could be announced imminently.
This development comes as the April 5 deadline approaches, by which TikTok must secure a non-Chinese buyer or risk a ban in the US over national security concerns.
Who will own TikTok US?
The deal is expected to result in a consortium of US investors controlling TikTok’s American business. As per reports, firms such as Andreessen Horowitz, Blackstone, and other private equity investors will own 50% of the business.
Meanwhile, existing investors in TikTok, including General Atlantic, Susquehanna, KKR, and Coatue, will retain a combined 30% stake.
ByteDance, which currently owns TikTok, would retain less than a 20% stake to comply with US legislation that restricts foreign adversary control to below 20%.
Additionally, Oracle, owned by tech billionaire Larry Ellison, will be responsible for securing TikTok’s US data as part of the agreement.
Uncertainty over TikTok’s algorithm
One of the most contentious issues in the sale is who will control TikTok’s algorithm—the powerful recommendation system that drives the app’s success.
Currently, there are two competing proposals:
- ByteDance retains control of the algorithm, as demanded by the Chinese government.
- A US-based entity fully operates the algorithm, in compliance with US national security requirements.
US lawmakers argue that allowing ByteDance to maintain any control over the algorithm poses a security risk, as it could still influence content moderation and data privacy.
Amazon and other bidders enter the race
Despite the advanced nature of negotiations with existing investors, Amazon reportedly submitted a last-minute bid to acquire TikTok’s US business.
Additionally, Zoop, a startup founded by Tim Stokely, the creator of OnlyFans, has reportedly partnered with a cryptocurrency foundation to make a bid for TikTok, according to Reuters.
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However, sources suggest that existing investors are still the frontrunners in securing the deal.
Background: The legal battle over TikTok’s future
The current situation stems from a bipartisan law signed by former US President Joe Biden, which required TikTok to either divest its US operations or face a nationwide ban due to concerns over data privacy and national security.
ByteDance challenged the legislation in court, arguing that the concerns were exaggerated and that the law violates the First Amendment by restricting free speech.
Meanwhile, Donald Trump, who had initially supported banning TikTok, made a surprise move by joining the platform during his presidential campaign. Following his election victory, Trump requested that the US Supreme Court pause the ban, buying TikTok additional time to negotiate a sale.
Since taking office on January 20, President Trump has placed a temporary hold on the ban, allowing TikTok to find a suitable American buyer before the April 5 deadline.
What happens next?
With the deadline just days away, a decision on TikTok’s future in the United States is expected very soon.
If an agreement is reached, TikTok’s US business will continue operating under American ownership, easing concerns over data security.
However, if a deal fails to materialise, TikTok could face a full-scale ban, forcing millions of American users to seek alternative platforms.
As political and corporate interests collide, the next 48 hours will be crucial in determining whether TikTok remains a staple of social media in the United States or becomes another casualty of the US-China tech war.
