UPDATE: On September 25, President Trump signed an executive order declaring that his plan to sell Chinese-owned TikTok’s U.S. operations to U.S. and global investors will address the national security requirements in a 2024 law, Reuters reported.
After more than nine months of drama and speculation, it appears that a solution has been reached for the social media behemoth TikTok to remain online and available to U.S.-based users.
- The framework for a deal has reportedly been reached between China and the U.S. that would lead to China’s ByteDance transferring ownership to U.S. ownership in a sale, according to U.S. Treasury Secretary Scott Bessent.
- The app was banned a few days before Trump took office through a law, originally signed by President Joe Biden in 2024, citing national security concerns over the Chinese government’s potential to spy on and hoard data from American users.
- However, President Trump had delayed the enforcement of that ban repeatedly in an effort to try to ensure that a U.S. buyer could swoop in and purchase the app from ByteDance.
Bessent’s announcement about the basis of a deal comes after multiple rounds of negotiations, which are apparently ongoing. The framework reportedly involves multiple U.S. buyers, which may require an extended timeline for the details to be finalized. Likely for that reason, President Trump has extended the deadline to shutdown TikTok for the fourth time. If the framework of the deal remains intact and finalizes in the next few months, then it should be the final time that such an extension, or even a ban on TikTok, is necessary.
According to CNN, making up an 80% stake in the new ownership of TikTok within the recent framework are the following U.S.-based companies:
- Oracle
- Andreessen Horowitz
- Silver Lake
A majority U.S. board, including a Trump administration-appointed member, would operate some control within the ownership group. However, the White House did not confirm these specifics, claiming, “Any details of the TikTok framework are pure speculation unless they are announced by this administration.”
The next few days (or weeks or months) of dealings between Trump and Chinese leader Xi Jinping will be monitored closely as the two attempt to finalize the agreement. They are expected to speak on the phone Friday.
TikTok’s Impact On Promo
Approximately 170 million individuals in the U.S. are on TikTok. Included in that number are many small business owners, such as promotional products professionals, who use the app to promote their offerings and reach new clients and partners.
Javier Melendez, national account executive at PPAI 100’s No. 76 distributor Walker-Clay, has leveraged TikTok to create his own brand, drumming up business and generally keeping his name top of mind with clients. His instant reaction to the ruling in January was that there is simply too much money on the line for TikTok to resist a sale if truly forced to, perhaps correctly predicting it would never go dark in the U.S.
- Walker-Clay was named to the 2024 PPAI #Online18 as one of promo’s best organizations on social media.
“TikTok is too big a platform to not abide by the conditions the government is now stipulating, so someone will most likely come riding in,” said Melendez.
Nick Lateur, vice president of revenue at business service provider Merch.ai, was named the best social media user in promo for the second time this year. He says that loss of audience and revenue would hit some promo companies, but it would also have a ripple effect on the speed at which promo trends spread and the communities formed through promo professionals who might otherwise never connect.
“Some promo companies are able to utilize TikTok to shed a unique light on their services and humanize their teams,” Lateur said. “The ban could weaken brand communities and limit real-time trend discovery, making it harder to stay unique and competitive.”
Nick Lateur
VP of Revenue, Merch.ai
Connections, communities and amplifying brand awareness have all been ingredients in TikTok’s promo algorithm. At the moment, no platform is matching that impact, which means possible ramifications if it were to go dark.
Jade Crider, sales representative and social media coordinator at Ohio-based distributor Hasseman Marketing, which was named to the 2025 #Online18, participated in a panel called “Gen Z Speaks: Bridging The Gap For Authentic Connections” at PPAI’s Leadership Development Workshop. She says that she’s seen firsthand the ways TikTok has fostered community and uplifted small businesses, also confirming that it is an excellent platform to influence the younger generations.
She does, however, suggest that those same younger generations are nimble with their social media preferences.
Jade Crider
Sales Rep & Social Media Coordinator, Hasseman Marketing
“If TikTok were to cease operations, users would adapt and migrate to a new platform, and I would shift my attention to whichever platform I believe would have the greatest impact,” Crider says.
