In this photo illustration, the logo of TikTok is displayed on a smartphone screen on April 5, 2025 in Shanghai, China.
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President Donald Trump on Tuesday extended the deadline for ByteDance to divest TikTok’s U.S. business or be banned in the U.S. after a cabinet member on Monday said a “framework deal” had been reached.
The extension comes as The Wall Street Journal on Tuesday reported that under the framework deal, about 80% of TikTok’s U.S. business would be owned by an investor consortium that includes Oracle, Silver Lake and Andreessen Horowitz. As part of the arrangement, existing U.S. users would need to shift to a new app, according to report.
This is the fourth time Trump has extended the deadline. The extension, as described in an executive order, precludes the Department of Justice from enforcing a national security law that would effectively ban TikTok in the U.S. until Dec. 16.
Under the law, which would have come into effect on Wednesday, app store operators like Apple and Google and internet service providers would be penalized for providing services to TikTok’s U.S. operations.
Trump and Chinese President Xi Jinping are expected on Friday to discuss the terms of the TikTok-related deal that Treasury Secretary Scott Bessent revealed on Monday.
The deal, which is expected to close in the next 30 to 45 days, includes new investors, existing ByteDance investors and will result in Oracle maintaining its cloud computing agreement with TikTok, CNBC’s David Faber reported earlier on Tuesday.
Bessent said Tuesday during CNBC’s Squawk Box that Trump was willing to let TikTok “go dark,” which spurred China to agree to a deal. The Treasury Secretary said that the deal’s commercial terms had already been finalized “in essence” since March or April, but China put the deal on hold following Trump’s tough tariffs and trade policies.
“We were able to reach a series of agreements, mostly for things we will not be doing in the future that have no effect on our national security,” Bessent said Tuesday.
TikTok did not reply to a request for comment.
WATCH: Trump’s willingness to let TikTok go dark motivated China to make deal.
