TikTok Agrees to Sell US Operations to American Investors, Averting Ban and Triggering Multibillion-Dollar Government Fee

The Chinese owner of the popular video platform TikTok has reached a definitive agreement to sell its U.S. operations to a consortium of American investors, a move that is expected to net the U.S. government a multibillion-dollar fee. This landmark deal, which follows more than a year of intense negotiations, ensures the platform can continue operating in the United States, effectively averting a potential ban driven by national security concerns.

Averting a Ban and Establishing a New U.S. Venture

The agreement, signed recently, signals the culmination of Washington’s efforts to restructure the ownership of the highly influential social media app away from its Beijing-based parent company, ByteDance. The sale is structured to create a new U.S. joint venture, which will be compliant with American regulatory standards, particularly concerning data security and user privacy.

The White House has expressed its expectation that the deal will be finalized soon. The transaction is critical for the platform, which boasts over 170 million users in the U.S., allowing it to maintain access to the crucial American market. The deal to keep TikTok in the U.S. was reported to be near completion in late September 2025.

Financial Details and Investor Consortium

While the total valuation of the U.S. arm sale has not been publicly disclosed, the financial structure includes a significant and unusual payment to the U.S. Treasury. The U.S. government is expected to receive a multibillion-dollar fee as part of the transaction, according to reports.

The purchasing group is led by American investors. Former President Donald Trump commented on the likely composition of the consortium, suggesting high-profile media involvement.

Trump Says Murdochs Likely to Be Part of TikTok U.S. Investor Consortium.

The potential involvement of the Murdoch family, known for their extensive media holdings, underscores the strategic importance and high valuation of TikTok’s U.S. assets. The sale resolves regulatory uncertainty that has plagued the company since geopolitical tensions escalated.

Market Implications and Precedent

The successful sale provides a clear operational path forward for TikTok in the U.S. market, stabilizing advertising revenue and user growth that had been threatened by the prospect of a complete shutdown. For the broader technology sector, the transaction sets a precedent for how foreign-owned, high-profile technology assets must navigate escalating geopolitical tensions and national security mandates.

The agreement was reached after Washington arranged the sale of the U.S. arm of ByteDance’s popular video app to the consortium of investors. If finalized, the deal represents a major victory for the platform’s users and employees in the U.S.

• The deal ensures TikTok’s continued operation, removing the risk of a U.S. ban.
• It establishes a new U.S. joint venture structure for the platform.
• The transaction includes a mandatory multibillion-dollar payment to the U.S. government.