• Former President Donald Trump states a deal has been reached for TikTok’s U.S. operations, averting a ban.
  • Oracle and Walmart are set to take significant stakes in a new U.S.-based entity, TikTok Global, to address data security concerns.
  • The agreement, if finalized, would allow the popular app to continue operating for its over 100 million American users.

Former President Donald Trump told reporters on Saturday that his administration has approved a deal in principle for Chinese-owned TikTok, a move that would allow the popular video-sharing app to continue operating in the United States. The agreement, which he stated would create a new U.S.-headquartered company called TikTok Global, is designed to resolve national security concerns surrounding the app's ownership by ByteDance Ltd.

“I have given the deal my blessing,” Trump said. “If they get it done, that’s great. If they don’t, that’s okay too.” The announcement temporarily halts the looming threat of a ban that was set to take effect on September 20th under an executive order citing the International Emergency Economic Powers Act.

According to the terms discussed, software giant Oracle Corp. would take a 12.5% stake and become TikTok’s “secure cloud provider,” responsible for handling all U.S. user data. Walmart, which had been in talks to partner with Microsoft on a rival bid, is also poised to take a 7.5% stake in the new entity and would bring its e-commerce capabilities to a potential commercial partnership. The new board of TikTok Global would be comprised entirely of American citizens, including a national security director, people familiar with the matter said.

The deal represents a complex restructuring rather than a full divestiture. While ByteDance would retain a majority ownership stake in TikTok Global, approximately 40% of ByteDance itself is owned by American venture capital firms, a point the administration is emphasizing to argue the new company will be effectively controlled by U.S. interests. The arrangement is still subject to final approval by the Committee on Foreign Investment in the United States (CFIUS).

Reaction was swift. “We are pleased that the proposal by Oracle, Walmart, and ByteDance will resolve the security concerns of the U.S. Administration and settle questions around TikTok’s future in the U.S.,” a TikTok spokesperson said in a statement. Oracle and Walmart confirmed their participation but declined to comment on the specific terms ahead of a final agreement. Attempts to reach ByteDance for further comment were not immediately successful.

The announcement caps weeks of intense negotiations and geopolitical tension between the U.S. and China. China’s government had recently updated its export control rules to include “recommendation-based information delivery,” a move widely seen as giving Beijing a veto power over any forced sale of TikTok’s algorithm. It remains unclear if the current deal structure, which involves a partnership and licensing agreement rather than an outright sale of core technology, satisfies China’s new regulations.

For the vast ecosystem of U.S.-based creators and businesses that rely on the platform, the news offers a reprieve from uncertainty. The deal, however, is not yet finalized, and its complex structure is likely to face continued scrutiny from lawmakers on both sides of the aisle concerned about whether it truly severs data flows to the Chinese government.