Report: TikTok building new app to comply with US ban

TikTok's parent company ByteDance is building a new app that could replace the video app in the United States, The Information reports, as negotiations to sell TikTok purportedly enter their final stretch. As part of the tentative agreement, the new app would launch on September 5, with TikTok retaining functionality stateside until March 2026.

In May 2024, legislation was signed into law that would force the China-based ByteDance to sell TikTok to American companies or investors, or face closure by January 19, 2025. In late June, President Donald Trump signed a 90-day reprieve for the third time, a possibly illegal move that nonetheless gave his administration more time to secure a deal.

According to Bloomberg, the buyers are a group that includes investors from Oracle, Blackstone and venture capital firm Andreessen Horowitz.

The group reportedly made a previous offer to ByteDance before negotiations broke down over Trump's tariff threats. In this deal, the investors would retain 50% of ownership in TikTok, while ByteDance's stake would be reduced to 20% as required by the May 2024 law.

Any deal would have to be approved by both China and the United States. Speaking with from Air Force One on July 4, Trump claimed that a deal was close even though talks, scheduled for July 7 or 8, had not officially started yet. “I think we're gonna start Monday or Tuesday...talking to China, perhaps President Xi or one of his representatives, but we would we pretty much have a deal."