U.S. and China Reach Framework for TikTok Deal as Investors Eye Purchase

The U.S. and China have reached a framework for a deal that could allow TikTok to continue operating in the United States, Treasury Secretary Scott Bessent said Monday after talks in Madrid with Chinese Vice Premier He Lifeng.

Bessent told reporters the agreement was reached with guidance and involvement from President Donald Trump and followed intensive negotiations in which Chinese counterparts made "aggressive asks," according to his remarks. The administration said a phone call between Trump and Chinese President Xi Jinping is expected Friday to discuss the matter.

The development comes as a September 17 deadline set by U.S. law approaches. Congress passed legislation late last year that bars TikTok from operating in the United States unless its China-based parent, ByteDance Ltd., divests ownership of the app. U.S. officials have been negotiating terms under which a sale or restructuring could satisfy the law’s national security concerns.

The White House and Treasury did not identify a buyer in Monday’s statement. Media reports have repeatedly named Oracle co-founder Larry Ellison as a potential lead investor in a U.S. purchase. Oracle already hosts TikTok’s U.S.-based data and has been reported to audit parts of the platform’s code, which has drawn attention to Ellison’s possible role.

Other organizations reported to be involved include venture capital firm Andreessen Horowitz, which has ties to figures in the current administration and was among the firms that backed Elon Musk’s purchase of X. Those reports also named several high-profile individual investors who have been discussed in media accounts as potential buyers or partners, including television personality Kevin O’Leary and YouTuber Jimmy "MrBeast" Donaldson.

Lawmakers and national security officials have long argued that TikTok poses a risk because of its links to ByteDance and potential access by the Chinese government. A bipartisan congressional panel last year concluded the platform had capabilities that could enable espionage and that it could be used to manipulate public opinion and work against U.S. interests. ByteDance has disputed those conclusions.

Earlier this year the app was briefly banned for a day in January before President Trump signed an order keeping it operational while investors explored ways to separate the platform from ByteDance. The administration extended the deadline several times as negotiations continued.

Bessent’s announcement did not disclose specific commercial terms or the structure of any proposed transaction. Officials also did not say whether any agreement would satisfy congressional requirements for a full divestiture or how governance, data security and code access would be enforced if a deal is completed.

Oracle and Andreessen Horowitz did not immediately respond to requests for comment. ByteDance said in prior statements it continues to seek solutions that protect its business and comply with U.S. law.

The TikTok platform remains one of the most widely used social media services in the United States, with reported downloads exceeding 175 million. The company’s popularity among younger users has heightened political and commercial stakes as negotiators work to reconcile national security concerns with business and consumer interests.

As negotiators move toward a possible agreement, the administration faces the task of ensuring any sale or restructuring meets statutory requirements and withstands scrutiny from Congress and regulators. A final outcome, and who might become the app’s U.S. owners, could reshape competition among technology and media companies and concentrate new influence among a small group of investors and firms if reports about prospective buyers are borne out.