TLDRs;
- ByteDance retains up to a 19.9% stake as TikTok’s US assets transfer to American control.
- Washington extends the transaction deadline to December 16, 2025, from the original September 17 cutoff.
- The new US TikTok board will be American-dominated, with one member appointed by the US government.
- Public support for banning TikTok has declined, with only 34% favoring a ban in 2025.
The United States has secured a new agreement with ByteDance, allowing TikTok to continue operating in the country under a restructured ownership model.
The deal, announced by President Donald Trump on September 16, 2025, grants ByteDance a minority stake of up to 19.9% in TikTok’s US business while transferring majority control to American owners.
This development comes after months of uncertainty over the app’s future in the US, where it boasts more than 170 million users. Washington has long argued that Chinese ownership of the short-video platform presents national security risks, particularly over concerns about user data access and algorithmic influence.
ByteDance Retains a Limited Role
Under the agreement, ByteDance’s 19.9% stake keeps it just below the legal threshold that would require full divestiture.
This compromise enables the Chinese company to remain involved in TikTok’s global business while complying with US regulations designed to curb foreign control of sensitive technologies.
Sources close to the deal revealed that the new US-based TikTok entity will operate under a board dominated by American members. Notably, one board member will be directly appointed by the US government, reinforcing Washington’s oversight role in the platform’s governance.
Extended Deadline for Completion
The original deadline for finalizing the transaction was set for September 17, 2025. However, the White House has granted a 90-day extension, pushing the cutoff date to December 16, 2025. This move gives both sides additional time to navigate regulatory approvals and complete the transfer of assets.
Commerce Secretary Howard Lutnick previously emphasized that TikTok could only continue operating if its critical technologies, particularly the recommendation algorithm, came under US control.
While the current deal does not directly transfer the algorithm itself, Washington has insisted on strong safeguards to prevent foreign interference in the app’s operations.
Political and Trade Dimensions
The TikTok issue has unfolded against the backdrop of ongoing US-China trade tensions. Although not a formal item on the agenda, the app’s future has been mentioned in bilateral discussions, particularly given China’s export restrictions on technologies like TikTok’s recommendation system.
Beijing has resisted granting approval for such transfers, arguing that TikTok’s algorithm qualifies as a protected technology under Chinese law.
The US Supreme Court previously upheld a 2024 law requiring ByteDance to divest its American assets, underscoring Washington’s determination to reduce foreign influence over social media platforms. While ByteDance denies posing any security threat, public debate has intensified over whether TikTok should remain available in the US.
Interestingly, public support for banning the app has waned in recent years. A Pew Research Center poll found that 50% of Americans supported a TikTok ban in 2023, but that figure dropped to 34% in 2025, reflecting the platform’s deepening role in US social media culture.
What Comes Next
The latest deal offers TikTok a lifeline in one of its most important markets while giving Washington greater confidence in its governance structure.
For ByteDance, retaining even a minority stake ensures continued involvement in the global business despite growing geopolitical pressures.
If the transaction closes as planned by December, TikTok will operate under a new hybrid ownership model, American-controlled but still tied to its Chinese origins. Whether this arrangement satisfies long-term political and security concerns remains to be seen.
