On April 2, 2025, the Trump administration revealed a last-minute proposal to reshape TikTok’s future in the U.S., just days before a looming ban deadline. The plan, dubbed “TikTok America,” would see the popular app’s Chinese parent company, ByteDance, license its algorithm to a new U.S.-based entity. American investors would own 50% of this new company, existing ByteDance investors would hold 33%, and ByteDance itself would retain a 19.9% stake—conveniently dipping below the 20% threshold set by a 2024 law demanding TikTok cut ties with China or face a nationwide ban.
The announcement comes ahead of an April 5 deadline, which President Donald Trump had previously delayed to allow more time for a deal. Sources say the administration could finalize the arrangement within 90 to 120 days, though the name “TikTok America” might still change. Trump, who has voiced support for keeping TikTok alive, could declare this structure a legal divestiture, dodging the ban while addressing security concerns tied to Chinese ownership.
Details on the new U.S. investors remain murky, but names like Andreessen Horowitz, Blackstone, Oracle, and Amazon have swirled in recent reports. Amazon even tossed in a late bid to buy TikTok outright, though insiders doubt it’s a serious contender. Meanwhile, CNBC reports suggest a deal could be sealed as early as today, overlapping with Trump’s separate rollout of sweeping global tariffs.
The proposal caps months of high-stakes wrangling. Last year, Congress passed a law forcing ByteDance to sell TikTok—used by 170 million Americans—or shut it down, citing risks of data harvesting by Beijing. Trump initially extended ByteDance’s deadline by 75 days in his first term, and now, with time running out, he’s steering the process personally. “There’s a lot of interest in TikTok,” Trump said recently. “The decision is mine, and I’d like to see it stay.”
Today’s developments unfold amid a busy White House agenda. Trump is set to unveil his “reciprocal tariff” policy later, slapping a 10% duty on all imports and up to 54% on China. Senior officials, including Vice President JD Vance and Commerce Secretary Howard Lutnick, are juggling both issues, with a TikTok meeting slated before the tariff event. Whether Trump green-lights “TikTok America” today remains unclear, but the clock is ticking.
Be First to Comment