US says TikTok deal reached with China. Here’s all we know and who the buyer could be

TikTok users in the United States are likely to avoid a shutdown after the Trump administration said on Monday it had reached a "framework" deal with China.

It comes as a Wednesday deadline approaches for TikTok's Chinese owner, ByteDance, to find a US buyer or face a ban in the US over national security concerns.

President Donald Trump suggested on Monday he reached a deal with China to keep the social media platform online.

"The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! It will be concluding shortly,” Trump wrote on his platform Truth Social. 

“A deal was also reached on a ‘certain’ company that young people in our Country very much wanted to save. They will be very happy!”

Trump added that he will be speaking with Chinese President Xi Jinping on Friday. He said the relationship with the leader “remains a very strong one”.

US Treasury Secretary Scott Bessent told reporters earlier on Monday that there was a “framework deal” between the two countries.

Bessent didn’t share much about the deal, only that it was made between two “private parties” that have agreed to “commercial terms”.

Who could buy the app?

Oracle could be involved in a TikTok deal between the United States and China, according to reporting from American broadcaster CBS.

Sources told the broadcaster on Monday that Oracle could be part of a consortium of firms that would allow TikTok to continue operations in the US if a "framework deal" between the two countries is finalised later this week. Euronews Next is working to independently verify these claims.

Trump previously said he could see the app going to Oracle Chairman Larry Ellison, who has not publicly commented on a possible TikTok bid. 

Who else could buy the app?

Bloomberg reported in January that a consortium with venture capital firm a16z, Susquehanna International Group and General Atlantic, which is thought to include Oracle, is also in the running to buy the app. 

However, Trump also encouraged several US buyers to come forward and bid on the app. 

Other reported bids came from tech companies Perplexity AI, Microsoft, Amazon, billionaires Elon Musk and Frank McCourt via a consortium called the People’s Bid, along with a consortium led by Job Mobz founder Jesse Tinsley that includes YouTube content creator Jimmy Donaldson, also known as  Mr. Beast. 

Another suggestion the US president floated was the idea of a “sovereign wealth fund,” that could be funded by money made from trade tariffs "and other intelligent things,” as quoted by Reuters in February. 

What is the US buying?

It’s not clear whether ByteDance would be forced to sell the TikTok algorithm or just its US-based operations, according to Darío García de Viedma, fellow of technical and digital policy at the think tank the Elcano Royal Institute in Spain, who spoke to Euronews Next earlier this year. 

If the US doesn’t buy the algorithm, it could change what content is seen or recommended in Europe, which could, in turn, mean that creators part of the “TikTok economy” might have to move to other platforms to continue making ends meet. 

“In a matter of days, the big TikTok community could move to another platform and this would have a big impact on all the intellectual movements and culture and politics that are created on TikTok,” he said. 

Bessent wouldn’t answer questions about what happens to the social media app’s algorithm in case of a sale. 

How did the TikTok bill come about?

Trump has said in the past that TikTok operations in the US must either be sold or have an ownership structure change so the US has a controlling interest. 

If TikTok is to continue operating, Trump has asked for a 50 per cent stake either via a joint venture or US investors and even government involvement. 

The US Congress passed a bill in 2024 under the previous president Joe Biden, which meant the app would face a ban in the US unless its Chinese-based owner ByteDance sold the company.

The Supreme Court upheld the decision in January but since Trump’s return to office, the impending shutdown was postponed several times to find a deal, with the latest deadline being September 17. What do we know about what could happen next? 

‘One concedes TikTok, the other concedes something else’

Experts previously told Euronews Next that they believed TikTok was being used in the various ongoing trade talks with China. 

“I don’t see a scenario in which both [Xi and Trump’s] interests are met with a purchase or a ban,” García de Viedma said. 

“It would have to be part of a broader negotiation, where one concedes TikTok and the other concedes something else, like tariffs or export control”. 

The TikTok deal was on the agenda for the ongoing trade negotiations in Madrid with the same message as previously employed by Trump: that unless the app divest its US operations, it could face a ban. 

Since Trump’s return to office in January, American and Chinese officials have met four times to negotiate a trade deal: in May in Geneva, June in London, July in Stockholm and now in Madrid. Both parties negotiated several topics, including US tariff reductions and regulating US export control regimes to China. 

Reuters reported that TikTok was not discussed at the other trade negotiations between the US and China.