Trump Says "Very Large Companies Interested in Acquiring TikTok... Ban Act Grace Period Extended"

Agreement Reached with China on TikTok Sale
"TikTok Ban Act" Extended for Another 90 Days
Oracle-Led Consortium Emerges as Leading Bidder

On September 16 (local time), U.S. President Donald Trump announced that he had "reached an agreement with China" regarding the disposal plan for the U.S. operations of TikTok, the Chinese video platform that has raised security concerns in the United States.

Reuters Yonhap News

President Trump, speaking to reporters as he left the White House for a visit to the United Kingdom, said, "I plan to finalize everything in a phone call with President Xi Jinping on Friday (the 19th)," and added that there are "very large companies" seeking to acquire TikTok's U.S. operations.

The United States enacted the "TikTok Ban Act" due to concerns that ByteDance, TikTok's parent company, is linked to the Chinese government and could exploit personal data or pose security threats. Since then, President Trump has postponed the implementation of this law to allow Americans to continue using TikTok, while negotiating with the Chinese side to have a U.S. company acquire a majority stake in TikTok.

To finalize the acquisition of TikTok's U.S. operations by an American company, President Trump signed an executive order extending the suspension of the "TikTok Ban Act," which was set to expire on the 17th, by 90 days until December 16.

The Wall Street Journal (WSJ) reported that a consortium of U.S. investors, including Oracle, is likely to establish an entity holding approximately 80% of the shares to acquire TikTok's U.S. operations, with a board of directors primarily composed of Americans, including one member designated by the U.S. government, to manage the company.

WSJ added that, to address security concerns surrounding TikTok, user data would be stored on Oracle's U.S.-based servers, while the existing TikTok content recommendation algorithm would continue to be utilized.

As the U.S. and China continue negotiations over the sale of TikTok, CNBC reported that Oracle would maintain its existing cloud contract and that the deal could be finalized within 30 to 45 days. TikTok has managed U.S. user data through Oracle's servers, and Oracle, founded by Republican supporter Larry Ellison, has shown interest in acquiring TikTok's U.S. operations with encouragement from President Trump.