The United States government is moving closer to finalizing a deal that will see TikTok’s ownership structure altered ahead of the April 5 deadline set by President Donald Trump.
The development follows sustained regulatory pressure on ByteDance, TikTok’s Chinese parent company, to divest the platform’s U.S. operations on national security grounds.
Trump confirmed on Sunday that discussions with prospective investors are ongoing, with several parties showing interest in acquiring control of TikTok’s U.S. business.
The president explained that the platform’s continued operation is desirable, provided ownership concerns are addressed.
Since January, TikTok has been facing the prospect of a ban following the enactment of a 2024 law that prohibits its operations in the U.S. unless ownership is transferred to non-Chinese entities.
The app, which is used by nearly half of the U.S. population, has been under scrutiny over potential risks related to data protection and foreign influence.
Market sources indicate that private equity firms and existing ByteDance shareholders outside China are actively working on a bid to secure control of the U.S. segment of the platform.
Among those involved is Blackstone, which is considering a minority investment as part of a larger consortium.
The White House has maintained a firm stance on the divestment deadline, but Trump noted that limited flexibility could be considered if negotiations show significant progress.
Discussions are also expected to involve Chinese regulatory authorities, given ByteDance’s control structure.
Trump also hinted at the possibility of trade-related concessions to facilitate China’s cooperation on the deal, including potential adjustments to existing tariffs.
However, he clarified that the priority remains securing the platform’s compliance with U.S. security and data protection requirements.
The resolution of the TikTok ownership situation is expected to influence U.S. regulatory actions toward other Chinese-linked technology companies operating within the country.
