TikTok is building a new version of its app for U.S. users ahead of a planned sale to American investors, according to a report on Sunday.
What Happened: The Chinese-owned short-video app plans to launch the new U.S. version to app stores on September 5, The Information reported, citing sources, according to Reuters. Existing users will eventually need to download the new app to continue service, though the current version will function until March 2026.
The development comes as President Donald Trump announced Friday that the U.S. will begin negotiations with China as early as Monday or Tuesday over the ByteDance-owned platform. “We pretty much have a deal,” Trump told reporters aboard Air Force One.
Trump extended ByteDance’s divestment deadline to September 17, marking the third extension since his January inauguration.
TikTok did not immediately respond to Benzinga's request for comment.
Why It Matters: The original congressional mandate required TikTok to cease U.S. operations unless ByteDance completed asset divestiture or demonstrated significant sale progress.
The deal structure involves spinning off TikTok’s U.S. operations into a new American-controlled entity. Oracle Corp. (NYSE:ORCL), Blackstone Inc. (NYSE:BX), and venture capital firm Andreessen Horowitz have shown acquisition interest.
However, the transaction stalled after China indicated it would block forced divestment following Trump’s announcement of 145% tariffs on Chinese goods. The president acknowledged China’s approval requirement, stating, “President Xi and I have a great relationship, and I think it’s good for them.”
TikTok serves 170 million American users and has become a focal point in national security and data privacy discussions.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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