WASHINGTON ‒ TikTok has reached a preliminary deal to sell its U.S. operations to an American-based investor group, a move that would allow the wildly popular video app to continue functioning for 170 million users in the country, senior White House officials said.

The agreement, which President Donald Trump's administration has worked on for months, would spin off Beijing-based TikTok's United States operations to a new joint venture composed of majority American ownership. Oracle, a U.S.-based technology firm, would serve as TikTok's security provider for its American operations.

White House senior officials would not disclose the names of the investors during a Sept. 22 call with reporters on the transaction but confirmed the consortium includes the private equity firm Silver Lake.

Trump, during a Sept. 21 interview on Fox News, said Oracle co-founder Larry Ellison and billionaire tech investor Michael Dell were involved in the deal, and businessman and media mogul Rupert Murdoch and his son Lachlan Murdoch would "probably be in the group" as well.

Trump is expected to sign an executive order later this week supporting the agreement and delaying a U.S. ban on TikTok from going into effect for another 120 days to allow the company and investors to close the deal.

Under the arrangement, TikTok's algorithm would move under the control of the new U.S. joint venture. Oracle would be in charge of inspecting and monitoring the algorithm to make sure it's not used used for any "malicious purpose," an official said.

White House press secretary Karoline Leavitt said Americans' TikTok data will be stored securely on servers operated by Oracle in the United States without access from China. Leavitt said TikTok users in the United States will still be able to watch videos posted by users in other countries.

Bejing-based ByteDance, TikTok's parent company, is set to sign an agreement approving the framework of the deal. Various procedural hurdles still remain, however, including a review of antitrust laws governing fair market competition.

TikTok users in the United States wouldn't need to download a new app if the transaction is finalized.

TikTok sale projected to involve 'many billions' of dollars

The sale is expected to valued at "many billions of dollars," officials said, though the White House did not disclose a final figure of the transaction.

While the full breakdown of TikTok's U.S. ownership consortium is unclear, a White House official said it will comply with federal law that prevents ByteDance from owning no more than 20% of the U.S. operations.

The full composition of the ownership group is expected to be finalized by the closing of the deal, which could come in early 2026. The Trump administration has no plans for the federal government to take any equity stake in the joint venture, the official said.

Americans will hold six of the seven seats on TikTok's board of directors overseeing its U.S. operations, while ByteDance will occupy one of the seats, Reuters reported.

U.S. officials in multiple administrations have expressed concerns that TikTok poses a national security threat, alleging ByteDance is sharing U.S. user data with China. TikTok has repeatedly denied these claims.

Former President Joe Biden signed a law in 2024 banning TikTok in the United States unless Beijing-based parent company, ByteDance, divested its U.S. holdings. Trump, however, has extended the sell-or-ban deadline three times in his second presidential term.

Chinese President Xi Jinping appeared to give his blessing to the deal during a Sept. 19 phone call with Trump.

The Chinese government "respects the wishes" of TikTok and is "glad to see business negotiations in line with market rules and a solution that conforms to Chinese laws and regulations" Chinese officials said after the meeting.

The Trump administration "100% confident" the deal will receive final approval from Chinese leaders, a White House official said.

Trump, who supported a ban on TikTok during his first term, has become a TikTok fan, crediting the app for boosting his outreach to young voters in the 2024 campaign.

Reach Joey Garrison on X @joeygarrison.

This article originally appeared on USA TODAY: TikTok reaches deal to keep operating in US under American ownership, White House says

Reporting by Joey Garrison, USA TODAY / USA TODAY

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