What to know about a potential deal to keep TikTok running in US
[July 08, 2025] By
BARBARA ORTUTAY
Less than a month after extending a deadline to ban TikTok for the third
time, President Donald Trump told reporters late Friday night that, “We
pretty much have a deal,” on TikTok — but he did not offer details.
The details and timing of a potential deal are not clear. TikTok did not
immediately respond to messages for comment on Monday.
Emarketer analyst Jeremy Goldman said while TikTok is “reportedly
planning” a U.S. version of its app to comply with legal restrictions,
the platform — if it launches without the original TikTok algorithm —
“risks losing the very personalization that drives user engagement.”
In other words, TikTok just isn't TikTok without its algorithm.
“And getting millions to download a new app is no small feat, to say the
least,” Goldman added.
Here's what to know about where TikTok stands in the U.S. following
Trump's comments.
Extensions continue
Though he has no clear legal basis to do so, Trump has continued to
extend the deadline for TikTok to avoid a ban in the U.S. This gives his
administration more time to broker a deal to bring the social media
platform under American ownership.
It is not clear how many times Trump can — or will — keep extending the
ban as the government continues to try to negotiate a deal for TikTok,
which is owned by China’s ByteDance. While there is no clear legal basis
for the extensions, so far there have been no legal challenges against
the administration. Trump has amassed more than 15 million followers on
TikTok since he joined last year, and he has credited the trendsetting
platform with helping him gain traction among young voters. He said in
January that he has a “warm spot for TikTok.”
TikTok stays for now
For now, TikTok continues to function for its 170 million users in the
U.S. Tech giants Apple, Google and Oracle were persuaded to continue to
offer and support the app, on the promise that Trump’s Justice
Department would not use the law to seek potentially steep fines against
them.
Americans are even more closely divided on what to do about TikTok than
they were two years ago.
A recent Pew Research Center survey found that about one-third of
Americans said they supported a TikTok ban, down from 50% in March 2023.
Roughly one-third said they would oppose a ban, and a similar percentage
said they weren’t sure.
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Among those who said they supported banning the social media platform,
about 8 in 10 cited concerns over users’ data security being at risk as
a major factor in their decision, according to the report.
Trump said Friday that on Monday or Tuesday, the U.S. would take the
proposal to Chinese leader Xi Jinping or one of his representatives. The
president said he thinks they “probably” need China to approve the deal
but he wasn’t sure they needed to.
When asked whether he was confident China would approve the deal, Trump
said, “I’m not confident but I think so.”
He said that for the U.S., “we make a lot of money if the deal goes
through."
The Chinese embassy in Washington said in a statement that it has no new
information to share and “China has reiterated its principled position
on multiple occasions and will handle relevant issues in accordance with
Chinese laws and regulations."
Who wants to buy TikTok?
Although it’s unclear if ByteDance plans to sell TikTok, several
potential bidders have come forward in the past few months.
Aides for Vice President JD Vance, who was tapped to oversee a potential
deal, have reached out to some parties, such as the artificial
intelligence startup Perplexity AI, to get additional details about
their bids, according to a person familiar with the matter. In January,
Perplexity AI presented ByteDance with a merger proposal that would
combine Perplexity’s business with TikTok’s U.S. operation.
Perplexity had no comment on Monday.
Other potential bidders include a consortium organized by billionaire
business executive Frank McCourt, which recently recruited Reddit
co-founder Alexis Ohanian as a strategic adviser. Investors in the
consortium say they’ve offered ByteDance $20 billion in cash for
TikTok’s U.S. platform. And if successful, they plan to redesign the
popular app with blockchain technology they say will provide users with
more control over their online data.
“Every day that passes without a qualified divestiture of TikTok puts
Americans at greater risk of manipulation and surveillance. We believe
the administration will ultimately obey the courts and follow the
requirements for a lawful divestiture,” McCourt’s internet advocacy
organization, Project Liberty, said in a statement. "We look forward to
working with members of the administration, policymakers, and our many
outstanding partners in The People’s Bid to achieve this goal.”
Among other possible investors are the software company Oracle and the
investment firm Blackstone. Neither company immediately responded to
messages seeking comment on Monday.
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