TikTok could soon have a workaround to avoid a looming US ban of its video-sharing app.
The app’s China-based owner, ByteDance, is developing a replacement app intended for US-based users, The Information reported on Sunday, citing sources familiar with the plan.
President Trump told reporters on Air Force One on Friday that he planned to discuss TikTok’s fate with Chinese officials on Monday or Tuesday this week, according to multiple reports. Trump said the US had “pretty much” worked out a deal to carry out the app’s sale.
Chinese officials declined to confirm a deal was in place, CNN reported.
TikTok did not respond to a request for comment.
According to The Information, an alternate version of the app could become available in US app stores starting September 5 if TikTok sells its US operations to a group of non-Chinese investors.
Congress initially passed a law effectively banning TikTok in 2024, legislation signed by former President Joe Biden. The legislation prohibited TikTok from operating in the US unless it divests its ownership to a US- or US-allied country by Jan. 20. Without such a divestment, US cloud providers such as Oracle and app stores, including Apple’s and Google’s respective app stores, are banned from hosting the service.
Trump has used executive orders to suspend the deadline three times since January, after TikTok briefly went offline just before Trump took office. The Trump administration assured cloud and app store companies that they would not face fines while the deadline is extended.
Trump last extended the TikTok ban in a June 19 executive order that granted another 90-day reprieve, pushing the deadline to Sept. 17.
On Air Force One last Friday, Trump again told reporters what he had previously said about TikTok’s authority to divest its US operations. According to reports, the president said Chinese President Xi Jinping would likely need to sign off on such an accord.
“I’m not confident, but I think so,” the president said when asked if a deal was likely to be reached.
The prospect of a TikTok sale has garnered interest from a number of potential suitors.
Acquiring the app would likely come with a hefty price tag, as TikTok’s value has been estimated at as much as $50 billion.
A group of investors led by billionaire Frank McCourt Jr. has expressed interest in buying the app, as have Microsoft (MSFT), internet personality Mr. Beast, Oracle (ORCL) co-founder Larry Ellison, and AI chatbot developer Perplexity AI.
The continued effort by the US to reach a divestment also comes as the US continues to work through a potential trade deal with China following Trump’s initial tariff increase, and subsequent pause, on levies on goods made in the country.
TikTok previously tried to fight the Biden-era US law banning the app by taking its battle to the Supreme Court. But the court sided with the government’s argument that the app could pose a national security threat.
US officials have for years argued that the Chinese government could use TikTok to spread propaganda or gather information on US users, which it could then use to blackmail them in the future. Officials haven’t publicly shared evidence of the danger.
According to the Associated Press, China was prepared to sign off on a TikTok deal but pulled back after Trump unveiled the tariffs in April. Trump has also said any sale would likely come after the two countries reach some kind of trade agreement.
Trump initially called for a ban on TikTok during his first term in office but changed his stance during the 2024 election, saying that it serves as a bulwark against Meta’s (META) social media dominance.
Got a tip? Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley.
Alexis Keenan is a legal reporter for Yahoo Finance. Follow Alexis on X @alexiskweed.
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