A deal to save TikTok from being banned in the United States is close to completion, thanks to Vice President JD Vance.
Vance said he’s close that an agreement will be largely in place by the April 5 deadline.
“There will almost certainly be a high-level agreement that I think satisfies our national security concerns, allows there to be a distinct American TikTok enterprise,” Vance said last Friday in an interview aboard Air Force Two.
Sources close to the negotiations reveal that under the proposed structure, tech giant Oracle would safeguard the app in its cloud, while TikTok’s Chinese parent ByteDance would take a minority position in a new US majority-owned company.
Large US-based institutions that already have ownership stakes in ByteDance, including General Atlantic and Susquehanna, would form the majority of the ownership team.
“We feel good we can get this thing done next week,” said a person with direct knowledge of the negotiations.
The agreement is likely to include a grace period of approximately 30 days or longer to finalize details. Vance, who worked in venture capital before entering politics, acknowledged that extensive paperwork could push the final closing past the initial deadline.
“Typically, some of these deals that are much smaller and involve much less capital take months to close,” Vance said. “We’re trying to close this thing by early April. I think that the outlines of this thing will be very clear. The question is whether we can get all the paper done.”
TikTok’s fate has been uncertain since last year when then-President Biden signed bipartisan legislation forcing the app’s Chinese owner to sell to a non-Chinese buyer or face a nationwide ban. President Trump signed an executive order on his first day in office delaying enforcement of the ban for 75 days, setting the April 5 deadline.
Speaking with reporters Sunday on Air Force One, Trump said he hoped a deal could be done soon and noted the administration was “dealing with four different groups” of potential buyers. He has also indicated he’s open to extending the deadline if necessary.
One major challenge facing the deal is the app’s algorithm – the technology that gives TikTok its ability to provide personalized content but that critics say could be used by the Chinese government for espionage. Some investors have reportedly discussed seeking White House indemnification over potential legal liabilities related to the Chinese-made algorithm, while others believe the new ownership team will eventually need to create their own algorithm to comply with the law.
Senator Tom Cotton of Arkansas, a prominent Republican who has advocated for banning TikTok, is reportedly telling people he will temporarily stand down and allow the White House to develop a deal structure that complies with the legislation.
The valuation of the new company remains uncertain, with estimates ranging from $20 billion to $40 billion or more. TikTok has approximately 170 million users in the US, making it an enormously valuable but controversial property.
Several potential buyers have emerged publicly. Wyoming entrepreneur Reid Rasner, CEO of wealth management company Omnivest Financial, has reportedly offered $47.45 billion. Reddit co-founder Alexis Ohanian has also joined businessman Frank McCourt’s bid.
ByteDance has not publicly confirmed negotiations with any potential US buyer, nor has it confirmed its willingness to sell TikTok.
“I think whether it’s through an extension, or whether it’s through actually just getting the deal in place satisfies the national security concerns, I think we’re going to be in a place where we can say TikTok is operational, and it’s also operational in a way that’s protective of Americans’ data privacy and America’s national security,” Vance concluded.