President Donald Trump has once again delayed the enforcement of a U.S. ban on TikTok, pushing the deadline to December 16, 2025, from September 17, 2025. This marks the fourth extension since a law requiring TikTok’s Chinese parent company, ByteDance, to divest its U.S. operations was passed.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The move comes as negotiations between U.S. and Chinese officials appear to be making progress toward a deal that would allow TikTok to continue operating in the United States under new ownership.
According to The Wall Street Journal, a consortium of American investors, including Oracle (ORCL), Silver Lake, and Andreessen Horowitz, is expected to take control of TikTok’s U.S. business.
A Framework Deal Takes Shape
The ongoing debate over TikTok’s future stems from fears that ByteDance could be compelled to share U.S. user data with the Chinese government.
Treasury Secretary Scott Bessent confirmed that both sides have agreed to a framework for the deal, which would create a new U.S.-based entity to run TikTok domestically. According to WSJ, U.S. investors are expected to hold about 80% of the new company, while Chinese shareholders will retain the remaining stake.
To address national security concerns, TikTok’s U.S. version would reportedly operate on a modified recommendation algorithm licensed from ByteDance. This setup would allow American regulators to oversee data privacy, content moderation, and algorithmic transparency, while maintaining the app’s core user experience.
Trump is expected to speak with Chinese President Xi Jinping later this week to finalize the deal. If successful, the agreement could allow TikTok to remain in U.S. app stores and avoid a shutdown.
What Is the Best Social Media Stock to Buy?
For investors interested in investing in the Social Media sector, we have shortlisted the best stocks to buy in this sector, using the TipRanks Stocks Comparison tool. Analysts are most bullish on Meta Platforms (META) and Pinterest (PINS), both of which carry a Strong Buy rating. Among the two, Pinterest offers the highest upside potential from its current price.
