Despite the TikTok ban in January, the popular social media platform is still in the US, having only been down for a day thanks to Donald Trump. Now, according to The Information, an acquisition dealthat complies with the new law’s requirements appears to be close — and comes with plans to launch a new, separate app TikTokthat would ensure its continued presence in the US market.
Policies and technological balances
The deal, which is currently under negotiation, would see TikTok’s U.S. operations transferred to a group of non-Chinese investors led by Oracle . TikTok’s parent company, ByteDance, would retain a minority stake — a deal that would satisfy the Act Protection Foreign -Controlled Apps .
See also: Racist videos made with AI go viral on TikTok
However, such a transfer also depends on the approval of the Chinese government, which remains at odds with the Trump administration over tariffs and general trade policy.
Oracle and the cloud deal with the Public
At the same time, Oracle appears to have already strengthened its position vis-à-vis the federal government. According to the Wall Street Journal, the company has reached a historic agreement to provide cloud infrastructure to the US government, which includes a 75% discount on licensed software. The deal is described as “groundbreaking” and may strengthen Oracle’s credibility as a preferred partner for TikTok’s reorganization in the US.
See also: Donald Trump: Some "very rich people" want to buy TikTok
The new TikTok application — with the code name “M2”
TikTok staff, according to sources at The Information, are working feverishly on a new version of the app, internally codenamed “M2,” which is expected to be released in US app stores on September 5.The new app will gradually replace the existing one, which will be withdrawn from app stores and is expected to stop working completely by March 2026.
Meanwhile, the Trump administration recently extended the ban’s implementation deadline for a third time . This new deadline expires in mid-September, giving some more time to implement the deal and roll out the revamped app.
What does this mean for users and the market?
If the deal goes ahead, American TikTok users will likely see a new app with a similar user interface, but a different legal status and data management. ByteDance will have limited control, and content, as well as user data, will likely be controlled by American entities.
See also: Beware! Popular TikTok videos promote malware apps
The TikTok case is a landmark in US-China technology relations and a pilot for how other internationally owned platforms will be regulated in the future. It also raises questions about freedom of speech, control of personal data and government dominance in the digital sphere.
Source: www.theverge.com
